Equifax Settlement Prompts FTC to Release Disappointing Statement: You Might Get ‘Far Less Than $125’

The “overwhelming” response to the Equifax settlement has prompted the FTC to release a disappointing statement, telling consumers they might get “far less than $125.”

In a post in the organization’s website, FTC Assistant Director, Division of Privacy and Identity Protection, Robert Schoshinski wrote, “The public response to the settlement has been overwhelming, and we’re delighted that millions of people have visited ftc.gov/Equifax and gone on to the settlement website’s claims form. But there’s a downside to this unexpected number of claims.”

Schoshinski went on to clarify that “all 147 million people” who were affected by the security breach “can ask for and get free credit monitoring. There’s also the option for people who certify that they already have credit monitoring to claim up to $125 instead.”

However, “the pot of money that pays for that part of the settlement is $31 million,” which means that “a large number of claims for cash instead of credit monitoring means only one thing: each person who takes the money option will wind up only getting a small amount of money. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed.”

For anyone who has not yet submitted a claim, the FTC encourages them to “think about opting for the free credit monitoring instead. Frankly, the free credit monitoring is worth a lot more – the market value would be hundreds of dollars a year. And this monitoring service is probably stronger and more helpful than any you may have already, because it monitors your credit report at all three nationwide credit reporting agencies, and it comes with up to $1 million in identity theft insurance and individualized identity restoration services.”

Anyone who has already opted for the money is not out of luck, as the FTC says they will be sent “an email from the settlement administrator,” which will “be asking you for the name of the credit monitoring service you already have.”

At this point, those individuals will have the option “to change your mind” and “switch to the free credit monitoring.”

Schoshinski continued, “Please also note that there is still money available under the settlement to reimburse people for what they paid out of their pocket to recover from the breach. Say you had to pay for your own credit freezes after the breach, or you hired someone to help you deal with identity theft. The settlement has a larger pool of money for just those people. If you’re one of them, use your documents to submit your claim.”