ATLANTA–Just days after news reports that Equifax had provided incorrect credit scores earlier this year to lenders, the company has been hit with a proposed class action lawsuit.
As CUToday.info reported here, Equifax has confirmed it sent the erroneous credit scores to lenders of all asset sizes on people applying for auto loans, mortgages and credit cards and more during mid-March through early April of this year
The lawsuit filed in the Northern District of Georgia, lawyers for Nydia Jenkins allege that Equifax's error “landed her with a substantially pricier car loan.” Equifax's error, which was in place for about three weeks, potentially affected millions of people, the suit alleges, according to CBS News.
In a statement to CBS News, Equifax said that very few people were affected by the error, which it called a "coding issue."
"This issue, which was in place over a period of a few weeks between March 17 and April 6, was fixed on April 6," the company said.
"As part of our commitment to resolving this issue, Equifax has conducted an analysis of credit scores used for consumers seeking credit during the time period of the issue. Our analysis indicates that for those consumers there was no shift in the majority of scores during the three-week timeframe of the issue,” Equifax said in its statement to CBS News.
‘Small Number Affected’
“For those consumers that did experience a score shift, initial analysis indicates that only a small number of them may have received a different credit decision. While the score may have shifted, a score shift does not necessarily mean that a consumer's credit decision was negatively impacted."
The company said it would respond further in court filings.
Preapproved, Then Denied
According to the suit, Florida resident Nydia Jenkins was pre-approved for a car loan in January, but Jenkins' loan was denied in early April, because her reported credit score from Equifax was off by 130 points CBS News stated.
“Because the loan was denied, Jenkins was forced to buy a car from a different dealership at much higher interest, the suit states,” according to the report. “Under the initial loan, Jenkins would have paid $350 a month, but she now pays $272 every two weeks — or about $2,352 more per year, according to the suit.”