Report says Equifax issued false credit scores to ‘millions’ of customers

This spring, the Wall Street Journal reported that Equifax sent incorrect credit scores to millions of customers who applied for loans to buy homes and loans for cars.

As one of the three major credit reporting companies in the United States, Equifax provides financial information and results to consumers, influencing whether people are approved for products that include mortgages, credit cards, and auto loans, and what rate of interest they pay. Most credit ratings range from 300 to 850, with consumers with higher scores receiving better terms.

The magazine reported that millions of Americans were affected by the Equifax error, with some scores changing by as much as 20 points in either direction — enough to turn some potential borrowers down for a loan. According to the newspaper, a small number of people switched from no credit score to having one in the 1970s, or vice versa. The newspaper, citing unnamed sources, reported that the incorrect scores were sent to Ally Financial, JPMorgan Change and Wells Fargo, among other lenders.

coding problem

Equifax said in a statement on its website that it had fixed the bug, which it referred to as a “coding issue.”

“We know that businesses and consumers rely on our data and Equifax takes this technology coding issue very seriously. We can confirm that the issue has been fixed and that we are working closely with our customers on the analysis to best meet consumer needs,” the company said.

Equifax also said that basic credit report information has not changed. “[T]The company said there was no shift in the vast majority of scores during the three-week release time frame. A different credit decision.

This news was previously reported by National Mortgage Professional, a trade publication, in May. Mark Bigor, chief executive of Equifax, admitted the error at a financial conference in June.

He told attendees, “We had a coding issue that was a mistake made by our tech team in one of our old apps which left some scores with incorrect data in them. And we fixed the issue,” according to a transcript. from the event.

Bigor added that the company was working with affected consumers, noting, “We think the impact will be very small, and not something that makes sense for Equifax.”

Equifax was previously involved in a file 2017 data breach that exposed sensitive information to nearly 150 million Americans and resulted in Overthrowing the then CEO of the company. Equifax paid $700 million in fines and damages after the breach.

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