Many victims of the disastrous Equifax data breach in 2017 requested cash payments from the credit monitoring company. But the Federal Trade Commission (FTC) warned this week that there might be enough claim money for everyone to get a $125 check, according to a CNN news report. Now, the FTC is trying to persuade Americans to take Equifax’s offer of free credit monitoring instead of the money.
The federal government set up a claims website last month for a $575 million settlement, and millions of people have visited it. Of that amount, up to $425 million was set aside to compensate those who could prove they were victims of identity theft due to the Equifax data breach.
Consumers Are Getting Shortchanged.
As part of the $575 million settlement, up to $425 million was set aside to compensate those who could prove they were victims of identity theft due to the breach. For those unable to establish clear financial harm, likely the majority of consumers, the settlement offered users either free credit reporting to 10 years or a $125 one-time cash payout.
But, because the FTC set aside $31 million for these payouts, it is quickly running out of cash and is telling consumers that the free credit reporting is “much better value.” Free credit reporting is essentially worthless to most consumers because they includes terms of service restrictions that could take away your legal rights. This is, without question, a failure of the FTC.
Claim Your $125 Now
If you don’t claim your $125, you will likely lose it because the FTC is running low on funds. The $31 million cash fund is part of a larger $300 million fund Equifax agreed to pay for under its data breach settlement with the FTC. The rest of the money provides free credit monitoring for consumers who opt for it instead of cash. Some of the money is also allocated for cash reimbursements to those who claim the breach cost them significant amounts of money—up to $25 for each hour spent freezing credit, disputing fraudulent charges, or seeking credit monitoring.
To file a claim to receive $125, visit the Equifax data breach settlement website at https://www.equifaxbreachsettlement.com/. Please remember that requesting the $125 does not prohibit you from submitting a compensation claim for other financial losses. You may also file a California class-action lawsuit if you have suffered losses. Don’t hesitate to contact a renowned consumer law firm to obtain more information about pursuing your legal rights.
Source: https://www.cnn.com/2019/07/31/tech/equifax-ftc-money/index.html
