Equifax Sent Lenders Millions Of Incorrect Credit Scores: WSJ

ATLANTA, GA — Equifax, a consumer credit reporting agency based in Atlanta, sent millions of incorrect credit scores to lenders over a three-week period earlier this year, resulting in higher interest rates for borrowers and, at times, denied applications, the Wall Street Journal reported.

The incorrect scores of people applying for auto loans, mortgages, and credit cards were sent to banks and other organizations throughout the country, the Journal reported, citing bank executives and others familiar with the errors. The scores were sent starting in mid-March through early April.

Often, the scores were off by 20 points or more, according to the Journal's sources. Equifax, which blamed the glitch on a "technology coding issue," began contacting lenders in May to inform them of the errors.

Equifax is one of the three largest credit reporting agencies in the United States, along with TransUnion and Experian. The company maintains credit reports for more than 200 million U.S. consumers.

In September 2017, Equifax announced a major data breach that exposed the personal information of 147 million people. The exposed information included names, birthdates, and Social Security numbers, according to CNBC.

As a result, the company was targeted with multiple lawsuits. Equifax reached a settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and all U.S. states and territories in 2019.