Equifax issued bad credit scores to ‘millions’ of customers, report says

Equifax this spring sent incorrect credit scores to millions of customers applying for home and auto loans, The Wall Street Journal reported Tuesday.

As one of the top three credit reporting companies in the United States, Equifax provides financial information and scores to consumers, affecting whether people are approved for products including mortgages, credit cards and car loans, and what interest rate they pay. Most credit scores range from 300 to 850, with higher-rated consumers enjoying more favorable terms.

The Journal reported that millions of Americans were affected by Equifax’s error, with some scores varying by up to 20 points in either direction – enough to have some potential borrowers rejected for a loan. According to the newspaper, a small number of people have gone from no credit score to a score in the 700s, or vice versa. The incorrect scores were sent to Ally Financial, JPMorgan Change and Wells Fargo, among other lenders, the Journal reported, citing unnamed sources.

Coding problem

In a statement on its website, Equifax said it fixed the error, which it called a “coding issue.”

“We know that businesses and consumers depend on our data and Equifax takes this technology coding issue very seriously. We can confirm that the issue has been resolved and that we have worked closely with our customers on the analysis to better meet consumer needs. “, said the company.

Equifax also said the underlying credit report information has not changed. “[T]there was no change in the vast majority of scores over the three-week period of the issue,” the company said. different credit decision.”

The news was previously reported by National Mortgage Professional, a trade publication, in May. Equifax CEO Mark Begor admitted the error at a financial conference in June.

“We had a coding issue which was an error made by our technology team in one of our legacy apps that caused some scores to be output with incorrect data. And we have fixed the issue,” he said. he told attendees, according to a transcript. of the event.

Begor added that the company was working with affected consumers, noting, “We believe the impact will be quite small, not anything significant for Equifax.”

Equifax has previously been involved in a Data Breach 2017 which exposed the sensitive information of nearly 150 million Americans and led to the ousting of the company’s CEO. Equifax paid $700 million in fines and restitution after the breach.

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