Equifax has agreed to a proposed $100 million class-action settlement that could compensate about 4 million consumers whose credit scores were affected by a coding error.

The settlement covers consumers nationwide whose inaccurate Equifax credit scores or other credit information were sent to lenders between March 17 and April 8, 2022, before the company corrected the coding error.

However, consumers will not automatically receive an equal share of the $100 million. Attorneys’ fees, administrative costs and other expenses will be deducted first, and individual payments will depend on the final settlement terms and number of valid claims.

Lawyers representing the affected consumers said the agreement is the largest class-action settlement ever reached under the federal Fair Credit Reporting Act, according to court filings cited by the Atlanta Journal-Constitution**. **

Equifax did not admit wrongdoing and continues to deny violating federal law. The settlement still needs approval from a federal judge before eligible consumers can receive payments.

The incorrect scores were particularly an issue in 2022 for consumers who were applying for mortgages, auto loans, credit cards and other forms of financing during the affected period. A credit score can play a major role in whether someone qualifies for a loan and, if approved, what interest rate they receive. An inaccurate score could potentially mean a borrower was denied credit or offered a more expensive loan than they otherwise would have received.

Equifax's own disclosures at the time indicated that the coding problem affected a portion of the scores it generated. In some cases, the difference was substantial. About 300,000 consumers reportedly had scores that differed by at least 25 points, a large enough change to potentially affect lending decisions or move a borrower into a different pricing tier.

The lawsuit was filed in August 2022 by Nydia Jenkins, a Florida consumer who alleged that the Equifax error caused her credit score to fall by 130 points. The inaccurate score affected her ability to obtain an auto loan and ultimately resulted in her paying significantly more for financing, according to the complaint. The lawsuit argued that the harm caused by the error could not simply be erased by correcting consumers’ credit reports after the fact.

The proposed deal follows other scrutiny of Equifax over the 2022 coding problem. In January 2025, New York Attorney General Letitia James announced a $725,000 settlement with Equifax after state investigators found that the coding error had affected the credit scores of more than 77,000 New York residents. Equifax had notified lenders and insurers in 2022 about consumers who potentially had been harmed by the error.

Meanwhile, about 37,000 Equifax customers have until September 1 to claim up to $59.70 from a separate $2.2 million class-action settlement. This case alleges Equifax duplicated negative information on consumers’ credit reports in 2022, including collection accounts and payments that were 90 days or more overdue.