Equifax Sent Erroneous Credit Scores To Lenders Due To Technical Glitch: Report

Equifax Sent Erroneous Credit Scores To Lenders Due To Technical Glitch: Report
  • Due to a “technology coding issue,” Equifax Inc EFX sent inaccurate credit scores on several U.S. consumers seeking loans from mid-March through early April, Wall Street Journal reported citing bank executives and others familiar with the errors.
  • According to the report, the scores were sometimes off by 20 points or more in either direction, enough to alter the interest rates consumers were offered or to result in their applications being rejected altogether.
  • Equifax said it has since fixed the error. ”The glitch didn’t alter the information in consumers’ credit reports, the company said.
  • The glitch, however, affected many lenders across multiple consumer loan products, not just mortgages.
  • “The impact is going to be quite small,” Mark Begor, Equifax’s CEO, said, “not something meaningful to Equifax.”
  • The glitch could land Equifax in more hot water with the Consumer Financial Protection Bureau. 
  • The agency is investigating how the three credit-reporting companies—Equifax, Experian PLC, and TransUnion TRU, handle consumer disputes.
  • One of the people said that Fannie Mae and Freddie Mac, which guarantee about half of the U.S. mortgage market, likely purchased only a relatively small number of loans at inaccurate prices due to erroneous credit scores. 
  • Price Action: EFX shares closed at $206.31 on Tuesday.
  • Photo via Wikimedia Commons

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