Federal Trade Commission Warns Equifax Victims They Will See Smaller Settlement Checks
The Federal Trade Commission is facing an issue over the Equifax settlement. Droves of Equifax victims are choosing a $125 cash payment over credit monitoring. Consumers are blowing up the math of the mega-settlement announced July 22.
The FTC is now saying Equifax victims will see lower settlement checks.
The statements also said the actual amount would be much smaller than the $125 initially offered. The FTC claims they hadn’t foreseen that so many people would want the cash. As a result, the FTC promised the payment-seekers, “You will be disappointed.”
FTC’s website said:
Because the total amount available for these alternative payments is $31 million, each person who takes the money option is going to get a very small amount. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed. You can still choose the cash option on the claim form, but you will be disappointed with the amount you receive and you won’t get the free credit monitoring.
The FTC also said the free credit monitoring provides better value:
The free credit monitoring provides much better value and everyone whose information was exposed can take advantage of it. If your information was exposed in the data breach and you file a valid claim before the deadline, you are guaranteed at least four years of free monitoring at all three credit bureaus (Equifax, Experian, and TransUnion) and $1,000,000 of identity theft insurance, among other benefits. The market value of this product is hundreds of dollars per year.
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