Settlement payments will flow through a
number of complex channels. Equifax will
initially pay $380.5 million into a fund to cover
identity theft resulting from the breach, as well
as any costs related to credit monitoring. The
company will pay an additional $125 million
if victims’ out-of-pocket expenses deplete the
initial fund.
Should all 147 million victims sign up for credit
monitoring services, Equifax could potentially be
on the hook for $2 billion.
Equifax will offer victims of the breach free
credit monitoring services for up to 10 years,
identity-restoration services for seven years,
and six Equifax credit reports annually for the
next seven years. That’s on top of the free report
all credit reporting companies must offer U.S.
residents every year.
Victims can also seek up to $125 as a
reimbursement for the cost of a credit-
monitoring product of their choice. Consumers
must submit claims for free credit monitoring or
cash reimbursements. The settlement received
preliminary approval from a federal judge, and
claims can start processing.
Equifax will have to spend at least $1 billion
over five years to enhance its cybersecurity
practices and will owe a $100 million fine to the
Consumer Financial Protection Bureau and tens
of millions of dollars to states and territories to
settle their lawsuits.
For information on the terms of the settlement,
as well as to file a claim, potential victims
should go to
https://www.equifaxbreachsettlement.com.
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