Equifax can't pay the $125 you expected, and you probably don't want its credit monitoring...

Posted:
in General Discussion edited August 2019
The U.S. Federal Trade Commission is informing those affected by the Equifax credit breach that they likely won't get their promised $125, and instead is pushing consumers toward credit monitoring from the same firm that allowed the data to be taken in the first place.

Equifax won't pay you the $125 you expected, says FTC


The FTC told those who filed for monetary compensation for the 2017 Equifax breach that they would receive "nowhere near the $125 they could have gotten if there hadn't been such an enormous number of claims filed."

As terms of the settlement, Equifax had set aside $31 million dollars of their $700 million deal to pay out those who opted to take cash, rather than the credit monitoring option. They're now politely suggesting that rather than opting for cash, filers should opt for the credit monitoring service.

"Frankly, the free credit monitoring is worth a lot more - the market value would be hundreds of dollars a year," said the FTC. "And this monitoring service is probably stronger and more helpful than any you may have already, because it monitors your credit report at all three nationwide credit reporting agencies, and it comes with up to $1 million in identity theft insurance and individualized identity restoration services."

If you're reading this, you're probably impacted. Apple's U.S. loan partner for the iPhone Upgrade Program is Citizens Bank -- a company that has utilized Equifax in the past.

Those who have already applied to receive the cash option will be required to provide additional information, such as the name of the credit monitoring service they use, to receive their "far less than $125." If they don't want to -- or can't -- provide that information, they'll be given the option to switch to credit monitoring service.

That $31 million divided by $125 is 248,000 consumers. If only 248,000 consumers applied for the cash, then they'll all get that $125, but looking at social media there are far, far more that have already done so, and the application period is still open.

And that credit monitoring? The "free" credit monitoring service will be provided by Equifax. You know, the company that had their data breached in the first place. And, you can bet that that service won't cost Equifax $125 for the terms of the deal.

It's understandable if a filer is wary to switch to credit monitoring managed by a company that mismanaged their personal information and then took exhaustive steps to keep this information secret for months after it happened.

"Companies that profit from personal information have an extra responsibility to protect and secure that data," said FTC Chairman Joe Simons at the time the settlement was announced. "Equifax failed to take basic steps that may have prevented the breach."

Image Credit: consumer.ftc.gov
Image Credit: consumer.ftc.gov


Not everybody is left in the lurch, though. Anyone who had suffered financial burdens due to identity theft because of the Equifax data breach will still receive monetary compensation -- as that was set to come out of a separate fund, and not the $31 million set aside for the filers' cash option.

Comments

  • Reply 1 of 20
    SpamSandwichSpamSandwich Posts: 33,407member
    Class-actions are BS. They are designed to benefit the law firm filing, not those actually affected.
    svanstromHeliBumrazorpitrandominternetpersonpscooter63FedupwiththeBSlostkiwiCarnage
  • Reply 2 of 20
    rob53rob53 Posts: 3,268member
    Fool me once ......

    Doesn’t surprise me this happened. Equifax should be closed down not allowed to continue to hold so much information about people. 

    Edited: fixed typo

    edited August 2019 xgmangutengelmwhiteStrangeDayssvanstromdavgregpscooter63FedupwiththeBSdysamoria
  • Reply 3 of 20
    AppleishAppleish Posts: 700member
    Never wanted the cash. Never wanted the crappy service.

    Take their money, sell off their assets, disperse the cash, and shut them down.
    edited August 2019 gilly33agilealtitudeStrangeDayssvanstromrazorpitdavgregFedupwiththeBSdysamoria
  • Reply 4 of 20
    widmarkwidmark Posts: 37member
    If the penalty set for the massive breach is worthless by the FTC’s own account, then what purpose does the FTC serve? That’s the entity that needs to be gutted and a replacement put in place, along with the FCC.  We have to get our congressmen and senators to disallow people to join from, depart to, or lobby for the industries which they regulate, otherwise there is a massive conflict of interest and its front and center here.  Same story with net neutrality, and putting oil execs in charge of the EPA.
    edited August 2019 svanstromFedupwiththeBSlostkiwidysamoria
  • Reply 5 of 20
    eightzeroeightzero Posts: 3,097member
    Class-actions are BS. They are designed to benefit the law firm filing, not those actually affected.
    Yeah, corporations should never be held accountable for violating the law to take small amounts from vast numbers of victims. 
    maltz
  • Reply 6 of 20
    xgmanxgman Posts: 159member
    disgraceful, but not surprising.
    razorpitFedupwiththeBSdysamoria
  • Reply 7 of 20
    mead2mead2 Posts: 1member
    The credit monitoring for 4 years is from Experian. 6 years if you choose Equifax. I would think most people would choose the Experian option for obvious reasons. https://www.equifaxbreachsettlement.com
    FedupwiththeBS
  • Reply 8 of 20
    gilly33gilly33 Posts: 444member
    Ok so get the free service from Equifax so that in a few years the same sh*t happens again. That they according to the article didn’t take the proper precautions in the first is shameful. All that intimate information about millions of consumers and they were ill prepared for a breach. Wow?!
  • Reply 9 of 20
    flydogflydog Posts: 1,132member
    mead2 said:
    The credit monitoring for 4 years is from Experian. 6 years if you choose Equifax. I would think most people would choose the Experian option for obvious reasons. https://www.equifaxbreachsettlement.com
    If you choose Experian then Equifax will provide all of your information to Experian.  These credit monitoring services generally include a term that states you agree to certain marketing communications and offers, so you'll basically double the amount of garbage you receive.

    The best option is to freeze your credit report at all three bureaus, which prevents anyone from looking at your credit file. 
    gutengelsvanstromFedupwiththeBSlostkiwi
  • Reply 10 of 20
    WgkruegerWgkrueger Posts: 352member
    The ultimate solution will be to make that kind of information exposed by the breach worthless. 
    FedupwiththeBS
  • Reply 11 of 20
    JFC_PAJFC_PA Posts: 937member
    Whether I receive the monitoring report or not Equifax WILL have my information. It’s what they sell. 
    FedupwiththeBSCarnagesandor
  • Reply 12 of 20
    StrangeDaysStrangeDays Posts: 12,955member
    More proof of the privileged status the massively wealthy (Equifax here) hold in politics and our justice system. This is a non-punishment punishment. A guy robbing a 7-11 gets his prison sentence and goes to prison. The privileged economic class suffer very little consequences for their actions. 
    svanstromrob53gutengelRayz2016davgregpscooter63FedupwiththeBSdysamoria
  • Reply 13 of 20
    jcs2305jcs2305 Posts: 1,338member
    mead2 said:
    The credit monitoring for 4 years is from Experian. 6 years if you choose Equifax. I would think most people would choose the Experian option for obvious reasons. https://www.equifaxbreachsettlement.com
    What does at least 4 years through Experian mean exactly? Is it 4 years or not ? Haha  What a joke..

    • At least 4 years of three-bureau credit monitoring, offered through Experian. You can also get up to 6 more years of free one-bureau credit monitoring through Equifax.
    • If you already have credit monitoring services that will continue for at least 6 more months, you may be eligible for a cash payment of up to $125. The amount that you receive may be substantially less than $125, depending on the number of claims that are filed.
    You still have to give a LOT of personal info through the Equifax website in order to set up the monitoring with Experian. I started to fill it out form for myself because I got the notice that I was involved back when this all originally came out.. Then I was like ... wait a minute do I want to give all of this info to them after what already happened? :o
    FedupwiththeBSlostkiwi
  • Reply 14 of 20
    badmonkbadmonk Posts: 1,319member
    Then from my perspective, the FTC should insist that the fund be replenished to allow appropriate compensation.

    Remember Equifax sat on the breach and actively attempted to cover it up.  The fact that there is no criminal charges to their actions just floors me.
    FedupwiththeBSlostkiwidysamoria
  • Reply 15 of 20
    zimmiezimmie Posts: 651member
    "Frankly, the free credit monitoring is worth a lot more - the market value would be hundreds of dollars a year," said the FTC. "And this monitoring service is probably stronger and more helpful than any you may have already, because it monitors your credit report at all three nationwide credit reporting agencies, and it comes with up to $1 million in identity theft insurance and individualized identity restoration services."
    Think of this as an auction for their credit monitoring. Some Equifax victims bought the 4-6 years of credit monitoring for $125. I bet far, far more picked the $125, thus establishing the value of 4-6 years of credit monitoring at well below $125.

    The wild part is the FTC only required them to set aside $31M for cash settlements to qualified claimants after they leaked >140M victims' data! That's 22¢ per victim. Come on, guys. It's time for a fine with some teeth.
    randominternetpersonFedupwiththeBSlostkiwi
  • Reply 16 of 20
    davgregdavgreg Posts: 1,039member
    This is what you get from “business friendly” or captive regulation. Most of the agencies of government designed to protect the consumer from predation are firmly in the grip of the very people who are supposed to be regulated. This is true of both the Federal and State levels of government.

    It is nonsense like this that undermines the confidence of ordinary citizens in the ability of government to do much of anything beneficial. 

    Time to sharpen the pitchforks, fellow citizens.
    FedupwiththeBSdysamoria
  • Reply 17 of 20
    SpamSandwichSpamSandwich Posts: 33,407member
    eightzero said:
    Class-actions are BS. They are designed to benefit the law firm filing, not those actually affected.
    Yeah, corporations should never be held accountable for violating the law to take small amounts from vast numbers of victims. 
    Maybe you misunderstood the post. By their nature, class-actions benefit the filing firm most. The amount any individual member of this class against Equifax may recover is hilariously small.
  • Reply 18 of 20
    What's up with FTC??  They are selling out the average Joe with respect to the $125 cash option now stating not enough funds available for number of claimants!  Equifax needs to be made to put more money the the cash "coffer" to cover all who select this option.  Once again, someone else is setting monetary limits without careful consideration for claimant volume.   Sounds like FTC needs a good "house cleaning" and Equifax needs to be shut down for trying to hide the breach in the first place.  And using Equifax's credit monitoring services is a joke! Am so damned mad with this mess!  Shame on both these entities!! 😠
  • Reply 19 of 20
    "Сredit Bureau" sounds all official but these are are simply companies who've set themselves up to collect and sell your financial information. How many people know that there are more than 3 Сredit Bureaus in the USA? Who gave these people the "authority" to do any of this? If they are collecting and selling my information then my report, my scores and fraud protection should be FREE. Just like with Google, if I'm the product then I shouldn't have to pay anything, ever! And they should always be on the hook for any damage they cause when my data is exposed.
    edited August 2019 dysamoria
  • Reply 20 of 20
    dysamoriadysamoria Posts: 3,430member
    Wait, why isn’t there credit protection just as a basic function of operating this damned business?
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