On September 7, 2017, Equifax, one of the “big three” U.S. credit reporting agencies, reported that hackers had gained access to sensitive personal information of 143 million Americans contained within Equifax’s extensive consumer files. If Equifax has a credit file on you–as it does on most Americans–your chances of being affected by this data breach are more than 50%. Equifax has known about this hack since June 29, 2017.

Equifax keeps extensive dossiers of data about consumers and sells that data to prospective creditors, current creditors, and others who subscribe to Equifax’s services. While some news outlets have described the hack as affecting Equifax “customers,” this is not accurate. Equifax has a file on you regardless of whether you have ever consented to it, and it is allowed, subject to the constraints of the Fair Credit Reporting Act 15 U.S.C. § 1681 (“FCRA”), to disclose your information to its subscribers. In other words, you are its product, not its customer.

The data in Equifax’s file typically includes the person’s name, address history, social security number, telephone numbers, a detailed credit history–i.e., open and/or closed loans and credit accounts, amounts owed, amounts and dates of recent payments, and any history of late payments or defaults–and public record information like bankruptcies or judgments. Equifax’s credit file on a consumer typically contains sufficient information to enable an unscrupulous person to steal the consumer’s identify and open fraudulent credit accounts in his or her name. This type of identity theft can result in enormous disruption, including harassment by debt collectors seeking to collect the fraudulently incurred debt, closure or freezing of existing legitimate lines of credit, and inability to obtain new legitimate loans because of damage to the victim’s credit inflicted by failure to repay the fraudulent loans.

Equifax and its main competitors, Trans Union and Experian, are closely regulated by the FCRA and have a duty under the law to ensure “maximum possible accuracy” of consumer reports provided to third parties. Numerous class-action lawsuits have already been filed regarding the data breach, and chances are good that you may be deemed a member of one or more classes and may eventually be entitled to relief accordingly. However, the more immediate concern is potential identity theft and damage to consumers’ credit. If you do not already monitor your credit, now is a good time to start. Note that Equifax, Trans Union and Experian are required by law to provide each consumer with at least one full, free credit report annually. These bureaus provide free credit reports online at www.annualcreditreport.com. In addition, if you are ever denied credit on the basis of an Equifax, Experian, or Trans Union report, you have the legal right to receive a free copy of the report on which the credit denial was based. Exercise this right any time you are denied credit for any reason.

If you discover fraudulent accounts or inaccuracies in any or all of your credit reports, you have the right to dispute the reports and may be entitled to compensation under the FCRA. Westbrook Law PLLC is experienced in representing consumers affected by inaccurate and improper credit reporting, and can provide guidance if you discover credit reporting errors or fraud. Contact us for a consultation.

TJW

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