【Updated 2022.12】Some users have now started receiving compensation, either by check or PayPal. If you previously filed a claim in the class-action settlement, remember to check. Of course, the amount is nowhere near the previously mentioned $125; payouts have generally fallen in the $5-$24 range.

Estimated Compensation

The Equifax settlement compensation has turned out to be far worse than many people expected. The previously advertised “at least $125” never really held up under scrutiny. People who selected cash compensation are now receiving emails asking them to provide the name of the credit monitoring service they currently have, or to change their claim to free credit monitoring instead. Here is the detailed breakdown:

First, the FTC published an article that did some simple math and found that $125 per person was basically impossible. Equifax’s total compensation fund is 31 million, while as many as 147 million people were affected. Even if only 1/10 of them requested cash compensation, each person would get only a little over $2. That is before considering that some people may have suffered much larger losses and could receive compensation well above $125. On top of that, Equifax’s initial mention of $125 was so attractive that many people chose the $125 cash option instead of credit monitoring, so there is basically no realistic chance of making money from this. If you think credit monitoring is useful, you can still choose 4 years of monitoring from all 3 credit bureaus + 6 years of monitoring from 1 credit bureau.

If you previously submitted a request for cash compensation, you likely recently received an email like this

YOU MUST EITHER VERIFY OR AMEND YOUR CLAIM BY OCTOBER 15, 2019. IF YOU DO NOT, YOUR CLAIM FOR ALTERNATIVE COMPENSATION WILL BE DENIED. TO VERIFY YOUR CLAIM FOR ALTERNATIVE COMPENSATION, YOU MUST PROVIDE THE NAME OF YOUR CREDIT MONITORING SERVICE THAT YOU HAD IN PLACE WHEN YOU FILED YOUR CLAIM, OR, YOU CAN AMEND YOUR CLAIM TO REQUEST FREE CREDIT MONITORING INSTEAD OF ALTERNATIVE COMPENSATION.

Simply put, before October 15, you must provide the name of the credit monitoring service that you said you were using when you filled out the form. Otherwise, your request for cash compensation will be denied. Of course, you can also change your request for cash compensation to free credit bureau monitoring instead. To submit additional materials or change your compensation method, use the link below:

It is actually not clear whether the service must be paid or free, or how comprehensive this credit monitoring needs to be. I even suspect that after people submit the name of the credit monitoring service they used, Equifax may send yet another round of requests asking for screenshots proving that the service was active when the claim form was submitted. And if too many people are still seeking cash compensation, they may continue tightening the rules and require a paid service next. In short, this seems like a step-by-step effort to reduce the number of people receiving cash compensation. Considering that the $125 mentioned above was already unlikely, choosing the free credit monitoring option may be fine after all.

If you are not sure what counts as credit monitoring, or if you actually were not enrolled in a service when you filled out the form, you could try these two free credit monitoring services:

Equifax Data Breach

This section references: https://www.lifelock.com/learn-data-breaches-equifax-data-breach-2017.html

Background

On September 7, Equifax announced a cybersecurity incident, one of the largest in history. The unauthorized data access occurred from mid-May 2017 through July 2017. The breach was discovered on July 29. The exposed personally identifiable information (PII) included the following details:

  • Name
  • Social Security number (SSN)
  • Date of birth
  • Address
  • Driver’s license number (in some cases)

The company detailed the breach in its press release. Key facts include:

  • Criminals exploited a vulnerability in a U.S. website application to gain access to certain files.
  • There is currently no evidence of unauthorized activity in the core consumer or commercial credit reporting databases.
  • The company is conducting an assessment and providing guidance on next steps.

Check Whether Anyone Else Leaked Your Information

You can check here: https://identitytheft.gov/Info-Lost-or-Stolen

Possible Consequences of the Data Breach

  • Credit cards on your credit report that you did not apply for: As you can see, with your name, SSN, address, and date of birth, someone can basically apply for credit cards in your name. If an online application gets auto-approved and the criminal then calls to have the card sent directly to them, you effectively become an ATM for them. They run up charges and do not pay, while you are left dealing with the mess.
  • Identity theft and impersonation: With this information, someone can pretend to be you. They can apply for small loans in person or online, and again you may be the one stuck with the consequences. Even medical bills from a hospital visit could end up under your name. After all, it can be hard for others to tell whether the person with all of your information is really you. They could even use your identity to scam your family members.
  • Your personal information could be mined and sold: With the information above, more details about you can be obtained from third-party sources, such as your school, family members, and work history. That information can then be sold directly to corporate sales teams. After a personal data breach, you may start receiving all kinds of marketing calls.
  • Scams using your information: Have you ever received calls claiming to be from the Chinese embassy, the police, or the IRS? Those are often still recognizable as scams because ordinary scammers usually have only limited non-core information. But if someone calls and is able to verify your SSN, date of birth, address, and driver’s license number, you might be much more likely to trust that person’s identity.

What to Do After a Data Breach

  • Freeze your credit reports (Freeze report): Applying for a new credit card or personal loan almost always requires a credit check. If your reports are frozen, others will not be able to open new accounts easily. However, if a criminal goes a step further, they may even be able to use your information to unfreeze the reports. Generally speaking, though, they have lots of data available and usually will not spend extra effort targeting you specifically. So in most cases, once your reports are frozen, you are less likely to suffer additional credit-related losses.
  • Monitor your credit reports: If you did not freeze your reports in time, be sure to review your reports from all three credit bureaus carefully. Check for extra hard pulls, new credit cards, new addresses, new names, or new employers. If you find anything unusual, freeze your credit reports immediately and contact the credit bureaus to remove the incorrect information. It is best to check once a month.
  • Watch for changes in your credit score: If your credit score suddenly drops, there is a good chance that something is seriously wrong on your credit report, such as unpaid debt. Monitoring your credit score can help you spot problems quickly.
  • Make sure you and your family stay alert for scammers: As mentioned above, having your personal information makes it much easier for criminals to scam you, so be especially careful. Tell your family members as well, and ask them to confirm anything suspicious with you in person.
  • Protect your personal information: Personal information is extremely important in the U.S. It is not something you should share casually. Be sure to protect it carefully.
  • Learn more about the subject

About the Equifax Data Breach Settlement

As the internet has developed, personal data breaches have unfortunately become all too common. In 2017, Equifax—one of the three major U.S. credit bureaus—was also hit, affecting a total of 147 million people. Equifax has now reached a settlement with the Federal Trade Commission, Consumer Financial Protection Bureau, and 50 U.S. states and territories. It will provide $425 million to help people affected by the data breach.

You can check below whether you were affected. Unfortunately, both LD and I were impacted. Given how broad this was, I’d guess that most people who were in the U.S. before 2017 were probably affected.

As you can see, if you were affected, you can choose between the following two options:

  • 4 years of monitoring from all 3 credit bureaus + 6 years of monitoring from 1 credit bureau
  • $125 cash

If you’ve had credit card fraud since 2017, received lots of suspicious calls, or found accounts on your credit report that you never applied for, I’d recommend choosing the first option. If you don’t really care, then just take the $125. After all, many credit cards already offer monthly

If you’re concerned, I’d suggest getting your free annual reports from all three credit bureaus to check for anything unusual. Or you can use creditsesame to take a look:

In addition, if you spent time dealing with issues caused by the personal data breach (in my opinion, this could include freezing your files with all three credit bureaus, correcting information with the bureaus, making phone calls, etc.), Equifax also offers compensation of $25 per hour. I’m not sure whether reading this article counts as time spent dealing with it though... If the breach caused you actual losses, you can also file a claim during the process.

How to Claim

  • You can choose to submit your claim online or by mail. If you’ve completely lost faith in equifax and are worried about your information being exposed again, you can choose to mail it in...
  • Fill in your personal information
  • Select the compensation you want
  • Then enter the time you spent. You can claim up to 20 hours, at $25 per hour. If you really did purchase credit monitor services during this period, I’d suggest uploading the receipt or related emails and explaining that you spent time purchasing those services. You should still be fine claiming it.
  • Losses caused by identity theft. I’d suggest uploading the relevant report.
  • Choose your payment method; it should be sent to the address you entered at the beginning

How to Fill Out This Settlement Claim

If you experienced any of the possible consequences mentioned above, or spent time trying to prevent the consequences of the data breach, you can file a claim. Time spent dealing with or preventing issues can be compensated at $25/hour. Losses caused by the consequences of the breach can be claimed up to $10,000. Below are some English keywords to help you fill it out:

Prevention-related (very time-consuming!)

  • Check my credit reports from Equifax, Experian, and TransUnion. Look for accounts or activity that I don’t recognize. It could indicate identity theft.
  • Place a fraud alert on my files to warn creditors that I may be a victim of identity theft. Creditors are required to make a reasonable effort to verify that anyone seeking credit in your name is, in fact, you.
  • Place a credit freeze on my credit files. A credit freeze means potential creditors cannot access your credit report. This makes it less likely an identity thief can open new accounts in your name.
  • Monitor my existing credit card and bank accounts. Watch for charges I don’t recognize.
  • Learn about credit report、identity theft、data breach

Loss-related

  • Report to police about identity theft and fraud. Loss $xxx because of fraud
  • Spend $xx on credit report monitor service. Remove unauthorized credit inquiries from credit report.
  • Credit score decreased by xx%, get higher rate on home loan.
  • declined on new credit card/loan application

Try to put things into your own words as much as possible.

Summary

Personal information is very important in the U.S., so make sure to safeguard private data such as your SSN, driver lisense, phone number, and address. I recommend checking one credit report every 4 months, and then reviewing the report provided by your credit card each month to see whether there’s anything unusual. This post will also continue to be updated with news about data breaches and ways to handle them.