Equifax compensation payouts could run to cents not dollars

Equifax compensation payouts could run to cents not dollars

Consumers expecting a payout to compensate for the exposure of their personal data during the massive Equifax data breach could end up with as little 31 cents - rather than the $125 promised - due to a £31 million disbursement cap on cash set aside to cover claims.

The Federal Trade Commission's settlement with Equifax over the 2017 data breach included at least $300 million and potentially up to $425 million to help consumers recover from the breach, with the proposed value of each payout set at $125.

However, a new FTC blog post notes that because of high interest in the alternative cash payment under the settlement, consumers who choose this option might end up getting far less than $125.

If all 16 million who were affected applied for the cash option, each individual would walk away with just $0.31.

"The public response to the settlement has been overwhelming," the FTC wrote. "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."

Instead, the FTC is urging consumers affected by Equifax’s 2017 data breach to consider signing up for the free credit monitoring offered as part of the settlement.

This has caused a furore in social media circles.

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