In September 2017, consumer credit monitoring agency Equifax announced the private information of 147 million Americans had been exposed in what is now known as one of the largest data breaches in history. Soon after the data breach was announced, the Federal Trade Commission, the Consumer Financial Protection Bureau and 50 U.S. states and territories filed a class-action lawsuit against Equifax for failing to secure the personal data stored on its network.
As part of a global settlement, Equifax agreed in July 2019 to pay up to $425 million to people affected by the data breach. The final deadline to file a claim was Jan. 22, 2024. Those eligible were compensated for out-of-pocket losses and time spent recovering from identity theft or fraud. But multiple VERIFY readers, including Ray, reached out to ask about new notices they received in December about getting an additional payment from Equifax.
THE QUESTION
Is Equifax sending out additional settlement payments?
THE SOURCES
THE ANSWER
Yes, Equifax is sending out additional settlement payments.
WHAT WE FOUND
Equifax is sending out additional settlement payments to people who already received payments because there are leftover funds.
“In November 2024, the settlement administrator will be sending prepaid cards with additional payments to those who previously received a payment,” the Federal Trade Commission said in an update on its website.
Previously, payments were made to eligible claimants who fell under three categories:
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Out-of-pocket costs – For those with losses or charges related to identity theft, falsified tax returns or other misuse of the claimant’s personal information
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Time Spent – For claimants who say they spent time on preventable measures as a result of the data breach
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Alternative Compensation – A $125 payment for those who opted out of the offered credit monitoring services because they already had their own
According to the settlement agreement, “any remaining funds resulting from the failure of Settlement Class Members to timely negotiate a settlement check or to timely provide required tax information such that a settlement check could issue, shall be distributed to Settlement Class Members, or as otherwise ordered by the Court, for consumer restitution and redress but in no event shall any of the Consumer Restitution Fund revert to Equifax.”
The official Equifax settlement website confirms that settlement funds still remain. As a result, “Settlement Class Members with valid claims for Time Spent and Alternative Compensation are eligible for pro rata payments and will receive their pro rata payments via electronic pre-paid card.”
Those eligible for the additional payment will receive an email notice from either [email protected] or [email protected].
Only those who filed a claim prior to the deadline are eligible for an additional payment, but free identity restoration services and credit monitoring is available for all impacted customers in the U.S. whether they filed a claim or not.