Equifax has agreed to a $2.2 million settlement to resolve a class-action lawsuit alleging that the credit reporting agency improperly listed collection accounts more than once on certain consumer credit reports. The settlement, which received preliminary court approval on May 4, 2026, affects an estimated 37,000 consumers, according to the official settlement notice.

Equifax has denied any wrongdoing but consented to the payout to avoid further litigation. The company is one of three dominant nationwide credit reporting agencies—alongside Experian and TransUnion—that maintain credit files on hundreds of millions of Americans and supply the data underlying most lending decisions in the United States.

Background of the Lawsuit

The case originated from a complaint filed by a Georgia woman in June 2022. According to court documents, she discovered that Equifax had recorded a $305 collection account on her credit report multiple times. The lawsuit asserted that this was not an isolated incident within Equifax's reporting system.

The plaintiff reported that her credit scores dropped "severely" as a result of the reporting error, and a mortgage loan application was denied, according to the complaint. Even small changes in a credit score can determine whether a consumer qualifies for a mortgage, auto loan, or apartment rental, and can materially affect the interest rates offered by lenders.

Settlement Terms and Payments

Under the settlement terms, Equifax has allocated $2.2 million for cash payments to affected consumers. While individual payment amounts may vary depending on the number of claims filed, the settlement estimates that each class member will receive up to $600.

Affected consumers will also receive six months of credit monitoring service from Equifax.

Additionally, Equifax pledged to "avoid reporting the same collection account more than once on the same Equifax consumer report for a period of six months."

Who Qualifies for the Settlement

Eligible consumers are those who had a duplicate collection account appear on their credit report at the same time a credit report was requested. The alleged erroneous reporting occurred during August and September 2022 and was claimed to violate the federal Fair Credit Reporting Act (FCRA), which requires credit reporting agencies to follow reasonable procedures to ensure the maximum possible accuracy of consumer credit files.

Class members eligible for payouts received notification by mail or email from Equifax in August or September 2022.

A final settlement hearing is scheduled for Oct. 6, 2026, after which payments will begin to be distributed.

How to Submit a Claim

Claims can be submitted online at the official settlement website. Claimants must provide the ID and PIN included in the Equifax notification letter. A printable claim form is also available online and can be submitted by mail.

The deadline to submit a claim is Sept. 1, 2026. Mailed forms must be postmarked on or before that date.

Monitoring Credit Reports for Errors

Regularly checking credit reports can help consumers identify reporting errors such as the duplicate collection accounts at issue in the Equifax lawsuit. The government-authorized website annualcreditreport.com provides free access to credit reports from all three major credit reporting agencies. Despite the site's name, users can access their credit files as frequently as once per week at no cost. Under the FCRA, consumers who find inaccuracies have the right to dispute errors directly with both the credit reporting agency and the furnisher of the information.