The error could have caused borrowers to be wrongfully denied loans or pay higher rates. (source)
Equifax is a credit giant. It sends credit reports for millions of consumers to lenders. Now, company reports suggest some of the information sent was incorrect. In some cases, the errors were significant. The differential was at least 25 points for around 300,000 consumers. This mistake had a significant real-world impact on borrowers. (source)
The company statement says some borrowers may have gotten wrongfully denied credit. So, what did the company say caused the problem?
The company says the problem occurred because of a coding problem. It happened while changes were underway to one of Equifax's servers. This issue lasted for a few weeks. And it may have resulted in miscalculations. (source)
Equifax did not specify dates or figures. But an agency, Freddie Mac, sent an alert to its clients on June 1. The note said Equifax claimed about 12% of all March 17 to April 6 credit scores might be incorrect. (source)
The company got asked for further details on the matter. And they released a statement. Equifax wrote that "there was no shift in the vast majority of scores". And that "credit reports were not affected." The company declined to comment on how people can learn whether they were among the affected. And what recourse they may have if their loans got affected by the issue. (source)
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