In 2017, Equifax, one of the largest consumer credit reporting agencies in the United States, suffered a significant data breach that exposed the sensitive personal information of millions of people (147 million to 148 million customers). The breach included names, social security numbers, birth dates, addresses, and driver’s license numbers, as well as credit card numbers for about 209,000 consumers. However, Equifax agreed to a global settlement that included up to $425 million to compensate affected individuals.
Background of the Equifax Data Breach Settlement
The Equifax data breach settlement was reached after a lengthy conversation involving the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), 50 U.S. states, and legal advisors representing consumer class action plaintiffs. Anyway, the settlement established a recovery fund to provide various benefits, including three-bureau credit monitoring, compensation for out-of-pocket losses, and identity restoration services.
First Round of Payments
Initially, the settlement allocated at least $380.5 million for credit monitoring and related expenses, with an additional $125 million designated for out-of-pocket losses. The deadline for filing initial claims was January 22, 2024. Those who submitted claims during this period received their first round of compensation, which included cash benefits and other services.
Second Payment: Additional Pro Rata Payments
There may arise a question in your mind,” is Equifax Data Breach Settlement Offers Second Payment to Affected Individuals?”
Yes, it’s a welcome development that the Equifax data breach settlement is now offering a second payment to affected individuals. This additional compensation comes from the remaining settlement payments after the initial payout. Eligible individuals who received their first round of compensation may be eligible for this 2nd payment.
Eligibility for the Second Payment
To qualify for the second payment, individuals must have:
- Affected by the Breach: Anyone whose sensitive information must have been compromised in the 2017 Equifax data breach.
- Submitted an Initial Claim: Affected individuals must have filed a claim with all required documentation during the initial settlement process and received their first round of compensation.
- Received Notification: They should have received notification via email from a verified FTC sender with instructions on how to claim the additional funds.
Timing and Process
The timeline for receiving the second payment depends on when the email notification is received and whether instructions are followed correctly. Eligible individuals must monitor their inboxes for this notification to avoid missing the opportunity to claim their additional compensation.
Equifax Data Breach Settlement details
- Total Settlement Fund: Up to $425 million has been allocated for compensation and benefits.
- Initial Allocation: At least $380.5 million was set aside for credit monitoring and related expenses, with an additional $125 million for out-of-pocket losses.
- Second Payment Source: The additional pro-rata payments are being made from the remaining settlement monies after the initial distribution.
- Eligible Individuals: Approximately 147 million people were affected by the breach, making them potentially eligible for compensation.
Additional Benefits
Beyond the financial compensation, the settlement offers several other benefits to affected individuals:
- Free Identity Restoration Services: Available until January 2029 for those who discover misuse of their personal information, even if they did not file a claim for other benefits.
- Free Credit Reports: All U.S. consumers can obtain seven free Equifax credit reports per year until 2026 via www.annualcreditreport.com.
Must Read: Which organisation is responsible for enforcing data protection law in the UK?
Conclusion
The Equifax data breach settlement’s offer of a second payment to affected individuals represents a significant step in providing ongoing compensation and support. As the settlement continues to unfold, eligible individuals need to remain vigilant and follow instructions carefully to ensure they receive all entitled benefits. This process underscores the importance of robust data protection measures and consumer rights in the face of large-scale data breaches.
For further information, you can:
- Visit www.equifaxbreachsettlement.com
- Call 1-833-759-2982
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