You'll Get Your Equifax Money. It Just Might Take a While

Last week, Equifax agreed to a $ 575 million-up to $ 700 million-settlement over its major 2017 data breach. It gives you the right to pay your credit, or you can pay for it as much as you can. That's not about your money, but there's more pressing problem: Are you going to get it at all?

The $ 125 disbursements are initially capped at $ 31 million. And though it's still unclear exactly how many people filed so far, the FTC published a blog post on Wednesday that "the number of claims." The materials badociated with the settlement would have to be $ 125 million, because with $ 31 million to go around, the number starts going down after 248,000 claims.

"The audience has been overwhelming," the FTC wrote. "Because of the total amount available for these alternative payments is $ 31 million, each person who takes the money is going to get a very large amount of money. filed. "

The FTC post set off an understandable furor. If you knew up front that you'll get less than that promised $ 125, you might have opted for the second time. Or you may have joined the settlement at all.

But it's still lost, and there's still a good chance that Equifax will pay you all $ 125. As Slate points out, the $ 31 million cap will lift, baduming $ 425 million in its "Consumer Fund" -money it has committed to cover people who can not a half years. At that point, whatever's left $ 425 million will be applied to the $ 125 payouts, presenting much better, if belated, odds.

The FTC argues that it should be better, because it is a "better value" and will provide longer-term protection. But while this suggestion has some merits, especially given that the credit monitoring comes with $ 1,000,000 of identity theft insurance, it is not an obvious choice. Claiming the cash puts cold, hard cash-not a lot of cash, but a gesture in the general direction of cash-back in the hands of consumers. You're likely already eligible for at least a year of credit. And taking the credit monitoring means that Equifax country its rival Experian to offer you the service-further fueling the credit data industry.

When the FTC says that it will be disappointed with the amount you receive, it does not matter what distinction, and excludes the possibility that it can actually be lifted. The FTC told WIRED in a statement, "The settlement was designed with the 10-year credit monitoring product as the primary source of relief for affected consumers because it was viewed as the best source of future protection from identity theft." If you filed for the money and want to switch to the credit monitoring, you can email [email protected] and let them know.

Marc Rotenberg, president and executive director of the Electronic Privacy Information Center, says: "That's a big issue." -There is no way to negotiate adequate settlements or other consumer redress in the case of incidents like the Equifax breach.

"People should exercise their right and ask for the $ 125. It's possible the final number is less, but I really do think that people should take advantage of this," Rotenberg says. He also encourages consumers to apply for larger payouts if they can show that they have suffered as a result of the breach.

There is also the fact that the FTC itself does not actually have a fair share of the arrangement, because the agency currently lacks the legal authority to fine first-time data offenders. Last week, the agency asked how to grant this power. But Rotenberg notes that with a comprehensive data breach response plan within the federal government, a settlement like Equifax may be much more effective with an FTC fine.

But agencies like the FTC simply do not have the authority, resources, or expertise to act as a privacy agency, "he says. "That's a structural thing in the meantime, in the meantime, in the meantime, a little pain on Equifax, because they certainly have a lot of bread on us."

Whenever you get a check from the settlement in the next decade, do not forget the most important part. Even if it's just a dollar-cash it.

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