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Equifax blames coding issue for credit rating snafu

A coding problem at credit reporting agency Equifax (EFX) resulted in inaccurate credit reports being sent to potentially millions of consumers.

The Atlanta-based company issued a statement Tuesday that “there has been no shift in the vast majority of reviews” and that “credit reports were unaffected.”

The lending giant said it fixed the problem, which began in mid-March and lasted about three weeks.

“This issue… resulted in a possible miscalculation of certain attributes used in model calculations. We can confirm that the issue was resolved on April 6,” the statement said.

The company said that “a score shift does not necessarily mean that a consumer’s credit decision has been negatively impacted.”

Equifax said it is not taking the issue lightly and the full extent of the damage is still being determined.

“Our data shows that fewer than 300,000 consumers experienced a score shift of 25 points or more,” Equifax said.

The Wall Street Journal reported Tuesday that the coding problem affected millions of consumers looking for credit. The Journal quoted bank executives and people familiar with the matter, none of whom were named in the report.

Affected consumers included those applying for auto loans, mortgages and credit cards from major banks and non-banks. These big banks and non-bank lenders JP Morgan Chase & Co., Wells Fargo & Co. and Ally Financial Inc.

Equifax is one of the largest multinational consumer credit reporting agencies in the United States

On Wednesday, shares of Equifax fell 2.1% in early trade. The stock rallied to close at $213.01, a gain of $6.70, or 3.25%.


Equifax logo
Equifax cleared its executives of any wrongdoing in the sale of company stock before the breach became public knowledge.
Photo: Screenshot via Equifax

https://www.ibtimes.com.au/equifax-blames-coding-issue-credit-score-snafu-1837281?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Equifax blames coding issue for credit rating snafu

Fry Electronics Team

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