Page 12 - aruba-today-20220806

A12 BUSINESS
Saturday 6 auguSt 2022

What Equifax’s credit score errors mean

for consumers

By AMANDA BARROSO and
LAUREN SCHWAHN of Nerd-
Wallet
Equifax, one of the three
major credit bureaus, an-
nounced that a computer
coding error resulted in the
miscalculation of credit
scores for consumers in
a three-week period be-
tween March 17 and April 6.
For 300,000 consumers, the
error shifted credit scores
as much as 25 points. The
changes to credit scores This July 21, 2012, file photo shows signage at the corporate
did not show up on credit headquarters of Equifax Inc. in Atlanta.
reports, Equifax said in a Associated Press
press release.
While the error caused If you applied for a car or get one of these two no-
scores to shift in positive home loan or a credit card tices, then, according to
and negative directions, a between March 17 and Ulzheimer, “they were not
25-point drop in your credit April 6 and your applica- denied and they were not
score could do some major tion was denied or you had adversely approved with
financial damage, espe- to pay more potentially disadvantaged terms.”
cially if you’re on the cusp as a result of this miscal- CHECK YOUR EQUIFAX
of one of the credit bands. culated score you might CREDIT REPORT
For some consumers, that have some recourse if you Checking your credit report
could mean less access received one of the docu- should be your next step.
to financial services and ments below: Here, you’re looking to see
products like car loans and ADVERSE ACTION NOTICE: if a hard inquiry or a request
home mortgages, as well If your application was to check your credit shows
as credit cards with good denied, you should have up. This “hard pull” is con-
terms. received an adverse ac- firmation that you applied
NerdWallet spoke to credit tion notice. Federal law re- for credit during the three-
experts and consumer ad- quires creditors to tell you week time frame when the
vocates to nail down what why your application was error went undetected by
you should be doing in the denied and which bureau Equifax. Disputing the error
wake of this Equifax error. they got their information with Equifax is not an op-
HOW TO TELL IF YOU WERE from, so it’s important to tion since the miscalculat-
AFFECTED review this letter to under- ed scores did not appear
It might not be easy to stand better if the coding on credit reports. “There
determine if you were af- error impacted you. wasn’t an error on their
fected by this Equifax error. If you were declined “be- Equifax credit reports that
“To the naked eye, a con- cause of things that showed required an investigation
sumer would never know up on your credit report, if it and correction,” Ulzheimer
they were impacted, to the has to do with your credit said. “This was a program-
good or to the bad,” credit score in some way, shape ming error that wasn’t im-
expert John Ulzheimer said or form, then it’s worth go- pacted by how a consum-
in an email. ing back and pulling a er acted or paid their bills.”
Equifax says it’s “collabo- copy of your credit report CONTACT YOUR LENDER
rating with our customers and your credit score,” says AND EQUIFAX
to determine the actual Bruce McClary, senior vice If affected, contact your
impact to consumers,” al- president of communica- lender and ask it to reassess
though it’s unclear how or tions for the National Foun- your application or loan
when they will notify the im- dation for Credit Counsel- terms.
pacted customers, if at all. ing. It’s also worth “finding Getting rate changes on
“This is not the consumer’s out what credit score the a credit card will be easier
fault,” says Chi Chi Wu, an creditor was using to evalu- than changing the terms
attorney at the National ate you,” he says. of a mortgage or car loan,
Consumer Law Center. RISK-BASED PRICING NO- according to Wu.
“And it is outrageous that TICE: If you applied for a If you believe you may
an error by Equifax harmed loan or credit card during have been affected, you
consumers and now they this period and were given can also try calling Equi-
have to go back and fix it.” less favorable terms (e.g., fax’s customer service at
Follow these steps to help higher interest rates), you 1-888-378-4329.
safeguard your score in the should have received a BE ON THE LOOKOUT FOR A
wake of the Equifax error: risk-based pricing notice. MESSAGE FROM EQUIFAX
REVIEW ANY NOTICES RE- If consumers applied for Keep an eye out for fur-
LATED TO DENIED APPLICA- a credit card or loan dur- ther communications from
TIONS DURING THIS PERIOD ing this time and did not Equifax.q