Daily Management Review

Equifax provides incorrect ratings on thousands of borrowers


One of the biggest credit reporting agencies in the world, Equifax, said yesterday that a technical issue with the data transfer to newer equipment resulted in an error in the calculation of credit scoring for "fewer than 300,000" retail customers.

Tyler Lahti
Tyler Lahti
The business stated that the credit rating mistakes might have cost as much as 25 points. These issues, according to Equifax, had been present for a few weeks but have since been resolved. In order to determine the degree of the harm, the company told customers that it is collaborating with them.

Earlier, American media reported that millions of individuals could be impacted by the error. It was reported that large banks like JPMorgan Chase, Wells Fargo, and Ally Financial, to which customers apply for all types of loans – car, home, educational, etc. – received inaccurate data on rating borrowers.

Since the issue persisted for a considerable amount of time—from March to May—the media conjectured that lenders may have charged consumers additional interest and other costs on loans as a result of giving erroneous data.

source: wsj.com