Equifax and U.S. government agencies announced on Monday that the credit reporting agency is prepared to pay up to $700 million to settle charges related to the massive 2017 data breach that impacted roughly 147 million people.
According to the U.S. Federal Trade Commission (FTC), Equifax has agreed to pay at least $575 million, but the amount could be increased to $700 million if necessary. The money will be used to compensate consumers and settle charges brought by the FTC, the Consumer Financial Protection Bureau (CFPB), and 50 states.
Equifax will set up a $300 million fund to provide credit monitoring services to affected customers and compensate them for credit and identity monitoring services and other expenses for which they paid themselves in response to the data breach.
In addition, $175 million will be paid to 48 states, the District of Columbia and Puerto Rico, and $100 million represents civil penalties paid to the CFPB.
On a website set up by Equifax for the consumer class action settlement, the company has pointed out that a federal court will need to approve the deal. If the settlement is approved, customers can receive free credit monitoring or $125 in cash if they already benefit from credit monitoring services for at least another 6 months. Impacted customers are also eligible for up to $20,000 in cash for the time spent dealing with the breach, including for losses resulting from the incident, and dealing with fraud, identity theft or other misuse of personal information.
“Equifax denies any wrongdoing, and no judgment or finding of wrongdoing has been made,” the company said on the equifax million consumers authorities breach
