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The
largest-ever settlement for a data breach draws to a close
multiple probes into Equifax by the Federal Trade Commission,
the Consumer Financial Protection Board and nearly all state
attorneys general. It also resolves pending class-action
lawsuits against the company.
"This company’s ineptitude, negligence, and lax security
standards endangered the identities of half the U.S.
population," New York Attorney General Letitia James said in a
statement.
Equifax, one of three major credit-reporting companies,
disclosed in 2017 that a data breach had compromised the
personal information, including Social Security numbers, of 143
million Americans.
The scandal upended the company, which saw the exit of its chief
executive, as its security practices and slow speed in
disclosing the breach were challenged. Washington policymakers
questioned how private companies could amass so much personal
data, setting off efforts to bolster consumers' ability to
protect and control their information.
Under the settlement, the company will establish a $300 million
restitution fund for harmed consumers that could climb to $425
million depending on its use. Consumers eligible for the fund
must submit claims showing they were fraud victims or set up
credit-monitoring services following the breach.
Equifax will also pay a $175 million fine to the states and $50
million to the CFPB.
Affected consumers will also be eligible for 10 years of free
credit monitoring from Equifax, and the company agreed to make
it easier for consumers to freeze their credit or dispute
inaccurate information in credit reports.
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