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Report: Equifax sent wrong credit scores to lenders for millions of customers

Equifax Inc.
FILE- This July 21, 2012, file photo shows signage at the corporate headquarters of Equifax Inc. in Atlanta. The FTC on Wednesday, July 31, 2019, told consumers affected by the Equifax data breach that they are unlikely to get the full $125 cash payment that many sought. (AP Photo/Mike Stewart, File)

(ATLANTA, GA) — The Wall Street Journal reports that during a 3-week period in 2022, Equifax sent incorrect credit scores to lenders that resulted in higher interest rates and denied applications.

The Journal also reported that some of the scores were changed by as much as 20 points in either direction, which would be enough to jeopardize a loan for a prospective borrower.

Also, a small number of people went from having zero credit score to a score in the 700’s.

The erroneous credit scores were sent to Ally Financial, JPMorgan Chase and Wells Fargo, according to the Journal.

In a statement on its website, Equifax said it fixed the error, which it referred to as a “coding issue.”

“We know that businesses and consumers depend on our data and Equifax takes this technology coding issue very seriously. We can confirm that the issue has been fixed and that we’ve been working closely with our customers on analysis to best meet the needs of consumers,” the company said.

“Our data shows that less than 300,000 consumers experienced a score shift of 25 points or more. While the score may have shifted, a score shift does not necessarily mean that a consumer’s credit decision was negatively impacted. We are collaborating with our customers to determine the actual impact to consumers.”

Equifax is one of 3-bureau credit reporting agencies. These agencies include Equifax, Experian, and TransUnion.