Court Rules Equifax Owes $3 Million in Damages for Credit Errors

Atlanta-based consumer credit information house Equifax Inc. this week was socked with a court judgment of nearly $3 million for failing to correct errors in a credit report.

Equifax must pay Angela P. Williams $219,000 in actual damages and $2.7 million in punitive damages for negligent violation of the Federal Credit Reporting Act, according to several news reports. Williams won the verdict in state Circuit Court in Orlando, Fla.

Williams told the Orlando Sentinel newspaper her problems with Equifax and other credit information firms began in 1994. She disputed the errors in her report but Equifax failed to correct the file and continued to send it to creditors. Williams said the incorrect information in her file led to her being denied student loans, credit card accounts and other financial services.

She sued Equifax, Experian, and American Recovery Systems in 2003.

Williams’ attorney Steve Fahlgren during the jury trial contended that Equifax had confused her with someone with a similar name and Social Security number who had a history of bad debt. The attorney reported that Equifax would remove the incorrect accounts from Williams’ file only to later reinstate them and send them to prospective creditors.

Fahlgren also argued that Equifax did not inform clients such as creditors and collection agencies that Williams’ file had been mixed with that of another consumer.

Consumer information firm Experian and Mt. Prospect, Ill.-based collector American Recovery settled the suits out of court, according to the Sentinel. Equifax did not return calls for comment.