Court Rules
All enforcement actions
SettlementMedium Risk

NY AG Settles with Equifax for $725K Over Inaccurate Credit Scores

Equifax Information Services, LLCJanuary 14, 2025New York Attorney General

Penalty Amount

$725,000

Summary

New York Attorney General Letitia James announced a settlement with Equifax Information Services, LLC for inaccurately reporting credit scores to lenders due to a coding error, which lowered consumers' scores and inflated costs for loans and insurance between March and April 2022. Equifax will pay $725,000 and implement safeguards to prevent future errors, with restitution for affected consumers.

Remedy

Equifax must pay $725,000 in penalties, implement enhanced safeguards to prevent future errors, regularly monitor customer error reports, and provide restitution to affected consumers through the Office of the Attorney General.

Monetary PenaltyCompliance ProgramReporting RequirementsConsumer Refunds

Contract Impact

In-house legal teams should review vendor and customer agreements where Equifax or similar consumer reporting agencies provide credit data to lenders, insurers, or other financial institutions. Focus on clauses governing data accuracy warranties, error correction mechanisms, notification obligations for reporting inaccuracies, indemnification for damages caused by erroneous data, audit rights to verify data quality, and consumer restitution or remediation procedures. Changes may be needed to mandate stricter data validation protocols, define clear timelines for error reporting and correction, require transparency in lender/insurer remediation efforts, and include holdback or escrow provisions to cover future consumer harm from reporting errors.

Contract Search Terms

data accuracy obligationscredit reporting standardserror correction proceduresconsumer restitution clausesaudit rightsdata quality safeguardsindemnification for reporting errorsnotification requirements for data inaccuraciesremediation protocolscompliance with FCRA

Violation Types

Entity Details

Entity

Equifax Information Services, LLC

Also known as: Equifax

Industry

Financial Services

Official Sources

Related Enforcement Actions

NY

Paramount Skydance Corp.

New York Attorney General Letitia James obtained a temporary restraining order from the U.S. District Court for the Northern District of California blocking Paramount Skydance Corp.'s proposed $110 billion merger with Warner Bros. Discovery, Inc. The lawsuit alleges the merger would illegally reduce competition in film and television, leading to higher prices and fewer choices for consumers.

NY

23andMe

$18.0M

New York Attorney General Letitia James and a bipartisan coalition of 42 other attorneys general secured an $18 million settlement from genetic testing company 23andMe for failing to protect customers' private genetic data. The October 2023 data breach exposed sensitive genetic information of 6.9 million consumers, including 305,245 in New York, with some data published for sale on the dark web. The settlement includes monetary penalties and new data protection requirements for the company and its successor, 23andMe Research Institute.

NY

Paramount Skydance Corp.

New York Attorney General Letitia James and 11 other attorneys general filed a lawsuit to block the proposed $110 billion merger between Paramount Skydance Corp. and Warner Bros. Discovery, Inc., alleging the merger would violate antitrust law by reducing competition in theatrical film releases and basic cable television markets, leading to higher prices for consumers and fewer diverse entertainment options.

NY

3M Company

New York Attorney General Letitia James sued 3M, DuPont, and other chemical companies for knowingly causing decades of PFAS pollution through consumer products. The lawsuit alleges the companies hid toxicity risks, failed to warn the public, and seeks cleanup funding, damages, and injunctive relief.

NY

New York Attorney General

New York Attorney General Letitia James joined a bipartisan coalition of 48 other attorneys general in submitting comments to the FCC urging stronger rules to combat illegal robocalls. The coalition recommends expanding the definition of telephone number resellers, prohibiting resale of certain numbers, and requiring mandatory education for companies selling phone numbers. This is a regulatory advocacy action, not a direct enforcement action against a specific company.

NY

New York Attorney General's Office

New York Attorney General Letitia James issued guidance to New Yorkers donating to Venezuela earthquake relief, warning about fraudulent charities and scams. The guidance provides tips on verifying charities, avoiding phishing, and reporting suspicious organizations.