Equifax issued incorrect credit scores to “millions” of customers, the report said

Equifax issued incorrect credit scores to “millions” of customers, the report said

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

As one of the three major credit-reporting companies in the United States, Equifax provides financial information and scores for consumers, which affect whether people are approved for products including mortgages, credit cards and car loans, and what interest rates they pay. Most credit ratings range from 300 to 850, with customers with higher scores receiving more favorable terms.

The Journal 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 off for loans. According to the research paper, a small number of people go from having no credit scores to scores in the 700s, or vice versa. Ally Financial, JPMorgan Chase and Wells Fargo, among other lenders, were sent the incorrect scores, the Journal reported, citing unnamed sources.

Coding problem

Equifax said in a statement on its website that it had fixed the error, 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 is fixed and we are working closely with our customers on analytics to meet customer needs,” the company said.

Equifax also said the underlying credit report information has not changed. “[T]Most scores did not change during the three-week period at issue here,” the agency said. “Of the consumers who experienced score changes, preliminary analysis indicates that very few of those scores received a different credit decision.”

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

“We had a coding issue that was a mistake by our technology team in one of our legacy applications that resulted in some scores going out that had incorrect data in it. And we’ve fixed the issue,” he told attendees, according to a transcript of the event.

Begar added that the company is working with affected consumers, noting, “We think the impact is going to be very small, not something meaningful for Equifax.”

Equifax was previously involved in one 2017 Data breach which exposed the sensitive information of approximately 150 million Americans and resulted in Removal of the then CEO of the company. Equifax paid $700 million in fines and restitution after the breach.

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