Following settlements in three lawsuits, some Experience members will receive two free years of creditor monitoring from the credit reporting company. Some might also be eligible for financial compensation.
The settlement is a result of inaccurate reporting the company failed to handle properly.
Experian was named as a defendant in three different federal lawsuits that all claimed some individuals’ credit reports had inaccuracies that had negatively affected their credit scores. In some cases, the errors included civil judgments and tax liens, both of which have a significant impact on a person’s credit score. Some consumers faced denial of credit and higher costs of borrowing money as a result of the errors.
As a result of the lawsuit settlements, some consumers meeting certain requirements will receive free credit monitoring. A portion of those affected will be compensated financially for the losses caused by inaccurate reporting.
The credit reporting company created a website to help consumers determine if they are eligible for either monitoring or financial compensation.
Mediation and Arbitration Program Established by Experian
To qualify for financial compensation, consumers must show that they were financially harmed by the errors listed on their credit reports.
Experian has set up a mediation and arbitration program for people who believe they have been affected financially. If eligible, consumers will have the option of mediating their claims and potentially receive compensation for any money lost as a result of the errors.
The opportunity to mediate compensation through the program will be available through August 2020.
Who Is Eligible for Credit Monitoring?
Anyone who requested a copy of their credit report between January 15, 2011 and September 21, 2018, and found that something was listed on their report in error is eligible to take part in the settlement. Errors must include something of a public record, including a bankruptcy, tax lien, or judgment.
Those who had a third-party request a copy of their credit (as you would when applying for a loan) between the dates of January 15, 2014 and September 21, 2018, are also eligible to take part in the settlement if their report contained an inaccuracy.
As of 2018, all three credit reporting agencies removed civil judgments and half of all tax liens from credit reports. Prior to the change, even those who paid a tax lien had it on their report for up to 10 years. The change occurred due to a Consumer Financial Protection Bureau study revealed that reporting such information correctly was problematic.
Monitoring Your Credit for Errors
Though you might not be eligible for credit monitoring or financial compensation for an error on your credit, it’s still important to review copies of your reports from all three credit reporting agencies and take measures to correct any errors that occur.
Should you find an error on your report, you can file disputes with each bureau online, by phone, or by mail.
Keep in mind that an error might appear on only one company’s report or it might be on two or all three. It’s important to review your credit from all three agencies to ensure that what is included is correct.