Credit reporting agency Equifax to pay up to $700 million after data breach


The proposed settlement is subject to approval by a federal court and was announced Monday by the company, the Federal Trade Commission, the Consumer Financial Protection Bureau, 48 states, the District of Columbia and Puerto Rico. It will be the largest settlement ever paid for a data breach. As much as $425 million will compensate affected people with credit monitoring services. The deal also requires more changes to how Equifax handles private user data. For example, the company will have to adjust its information security protocols.


The FTC said Equifax failed to properly safeguard peoples’ personal information despite claiming in its privacy policy that it implemented “reasonable physical, technical and procedural safeguards” to protect their data. Starting in January, Equifax “will provide all U.S. consumers with six free credit reports each year for seven years.” n a statement, Equifax called the proposed settlement “a positive step for U.S. consumers.” Some consumer advocates said the proposed settlement didn’t go far enough.


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