It’s been nearly two years since the Equifax data breach impacted more than 147 million consumers. A failure to protect sensitive personal information by one the nation’s largest credit bureaus was not taken lightly by regulators. However, the timeline for determining the appropriate remedy has taken quite some time. In July 2019, the Federal Trade Commission, the Consumer Financial Protection Bureau, and all U.S. states and territories reached an agreement with Equifax – by way of a $700 million settlement.
For consumers impacted by the breach and its far-reaching effects, here’s what to expect once the settlement is approved by the court.
Breaking Down the Settlement
On July 22, 2019, the Federal Trade Commission held a press conference at its headquarters in Washington, DC, spelling out the proposed resolution agreed upon with Equifax for its massive data breach. The settlement would provide up to $700 million in monetary relief and combined penalties. Here’s how the numbers break down:
- An initial $300 million payment to a Consumer Fund paid by Equifax to compensate consumers impacted by the data breach
- An additional $125 million made available should the initial fund not cover all losses or claims
- Penalties totaling $175 million paid to 48 states, the District of Columbia, and Puerto Rico
- A civil penalty of $100 million payable to the Consumer Financial Protection Bureau
For the Consumer Fund, with a total of up to $425 million, Equifax intends to provide several remedies to consumers who faced challenges after the data breach. The fund will make available up to $20,000 per consumer to help cover the expenses and lost time associated with the incident. There are some limits on the reimbursements paid by the fund to eligible consumers, with the most notable including:
- $25 per hour, up to 20 hours, for any time spent safeguarding personal information or managing identity theft after the breach occurred
- Reimbursement for money spent on the purchase of credit monitoring or identity theft protection services after the breach
- Costs associated with freezing or unfreezing credit reports, at any credit reporting agency
- Up to 25% reimbursement for payment of subscription services paid to Equifax for credit monitoring or identity theft monitoring between September 7, 2016, and September 7, 2017
- Expenses, losses, charges, or other unreimbursed costs that resulted from identity theft after the breach
- Additional expenses that consumers may have incurred, like notary services, faxing, postage, mileage, or phone charges
In addition to these potential reimbursements, Equifax is also using the fund to cover a significant requirement of the settlement, made available to all U.S. consumers. Starting December 31, 2019, anyone has the opportunity to request up to six copies of their Equifax credit report at no cost. This is in addition to the one free copy consumers receive, once every 12 months. Consumers who were directly impacted by the data breach also receive no less than 10 years of free credit reporting as well as seven years of free identity-restoration services.
Consumers who opt to not enroll in the free credit monitoring service available through the settlement can seek reimbursement of up to $125 for the cost of a different subscription.
Making a Claim
The Equifax data breach settlement is now finalized and has been approved by the court. Consumers can take action to receive compensation for monetary losses by submitting a claim online at a dedicated Equifax Breach Settlement website, or by sending a claim via mail.
You can download a hard copy of the claim form here, or ask the Settlement Administrator to mail a claim form to you by calling 1-833-759-2982 or emailing them at info@EquifaxBreachSettlement.com.
Fill out your claim form, and mail it to:
Equifax Data Breach Litigation Claims
c/o JND Legal Administration
PO Box 91318
Seattle, WA 98111-9418
Claims made for out-of-pocket losses and time spent on managing issues related to the data breach must be submitted by January 22, 2020. However, a claim for future losses can be submitted up until January 22, 2024. Should any consumer want to exclude themselves from the settlement or object or comment, these actions must take place by November 19, 2019. If nothing is done by the claims deadline, consumers still have access to Identity restoration services, but no other reimbursements for losses may be claimed.