CaribbeanFever / FeverEyes / CaribFever

Caribbean Fever - Your ONLY destination to all things Caribbean and more

Victims of Equifax credit rating scandal that saw millions given false scores reveal how it forced mortgage rates UP - as CEO says 'impact is going to be small'

Victims of Equifax credit rating reveal how it forced mortgage rates UP

  • Scores of furious consumers have realized that they were affected by the credit rating glitch - which impacted them from March to April this year
  • Victims said they were denied loans and forced to work with high interest rates as their scores provided by Equifax plummeted  
  • The company brushed off the credit issue and said there was 'no shift' for the 'vast majority of consumers' during the three-week glitch
  • Mark Begor, Equifax's chief executive who is estimated to earn nearly $16million in his position, said the impact was 'going to be quite small' 
  • I don't play about my credit score,' he added. 

    One Twitter user, going by the name Emocane, said he also saw a sudden dip in his credit score during the affected period in late March as he was finalizing the purchase of his new home. 

    He told DailyMail.co that after going into a contract with a preapproved rate, he didn't use their credit card at all - but he was suddenly slapped with a higher interest rate regardless.

    During the period the false credit scores were given out by Equifax, his rate went from 4.74 to 5.374 - and he were told he would lose his earnest money in the property purchase if he didn't agree. 

    They said: 'I closed on my house March 30th and on March 23rd, the lender re-ran my credit and magically it raised my rate. F*** you Equifax, I'll give you these hands in court you f***s.'

    One woman, Amaya Magdala, said that she was also set to close on a house in May - but after inspections already went through, her lender said her credit went from high 700s to zero.

    Amaya said that the buying process was going smoothly right before her credit seemingly plummeted out of nowhere.  

    She wrote: 'This happened to us. We were all set to close on our house in May and then, after inspections, appraisal, everything went smoothly and we were set to move in in a couple weeks, we heard from our lender that suddenly our credit went from high 700s to ZERO. The 'credit' system ought to be abolished.' 

    Julie Hennessey told DailyMail.com that her Equifax score dropped a total of 63 points from 680 to 617 'with no reason' earlier this year, just as she and her husband were trying to get a loan to build their house. The couple were declined the loan. 

    Samuel, another Twitter user who was affected by the glitch, wrote: 'My TransUnion credit score is 706 while Equifax is 620. I actually submitted a credit dispute with them last week. 

    Bank executives and other sources claimed applicants for auto loans, mortgages and credit cards were affected by the error, which saw their scores fluctuate between credit ranges and may have caused them to miss out on the best interest rates available
    +8
    View gallery

    Bank executives and other sources claimed applicants for auto loans, mortgages and credit cards were affected by the error, which saw their scores fluctuate between credit ranges and may have caused them to miss out on the best interest rates available

    One twitter user said they saw the interest rate of his mortgage increase after their credit score was checked during the affected period

    One twitter user said they saw the interest rate of his mortgage increase after their credit score was checked during the affected period

    'This afternoon, this popped up on my phone. I knew something was egregiously off!!!

    'When I called last week, a law firm picked up. I kept asking the lady why a law office would pick up Equifax line, she won't give me a straight answer.' 

    One victim Anthony Giddens told DailyMail.com that his Equifax credit score dropped 78 points in March - despite the fact that they had just finished paying off a 'bunch of debt.'

    Teri Foley, from Colorado Springs, also said that their credit score went from high 700s to low 600s in a matter of a week, despite always making payments on time.

    Edward Gomez was a victim of the credit score glitch. He was 'screwed' by two loans, one of which got denied. And when the second car loan got approved -  he was given it at a higher interest rate. 

    He said that he had an Equifax credit score of 780 before applying for both loans, but this dipped to 750 before 'miraculously' going back up a few weeks later. 

    Christopher Martin said that Equifax's credit glitch nearly 'sabotaged my chance of getting an apartment' after his landlord revealed there were massive credit discrepancies between varying reports.

    Mr Martin was only then able to secure his home after paying a larger security deposit and forking out cash to get multiple credit reports to prove that Equifax's figure was wrong. 

    Deidra MacLeod told DailyMail.com that she was forced to forfeit a $5,000 deposit and give up her pre-fab home that she had made custom to her after her Equifax credit score crashed overnight.

    She was on track to getting a mortgage with a score of 780 - but when she approached her bank in March, she was told her rating had sunk to 542 and she was denied the loan.  

    Bank executives and others familiar with the errors said that the inaccurate scores were enough to alter the interest rates available to consumers, while others were rejected from applying for the loans altogether, The Wall Street Journal reports.  

    Equifax said the issue, which was attributed to a 'technology coding issue,' has been fixed and that the glitch did not affect the vast majority of consumer's credit reports. 

    'We have determined that there was no shift in the vast majority of scores during the three-week timeframe of the issue,' Sid Singh, president of Equifax's U.S. Information Solutions, said in a statement. 

    'We can confirm that the issue has been fixed and that we’ve been working closely with our customers on analysis to best meet the needs of consumers.'

    Mr Singh, who has an estimated net worth of $18.5million, added: 'For those consumers that did experience a score shift, initial analysis indicates that only a small number of them may have received a different credit decision.

    'Our data shows that less than 300,000 consumers experienced a score shift of 25 points or more.' 

    Mark Begor, Equifax's chief executive who is believed to earn around $16million a year in his position, had acknowledged the glitch in June at an investors' conference, claiming that the impact was 'going to be quite small' and 'not something that's meaningful to Equifax.' 

    Equifax's stock dropped by 2.2 percent on Tuesday, following reports of the credit error - but jumped back up on Wednesday morning
    +8
    View gallery

    Equifax's stock dropped by 2.2 percent on Tuesday, following reports of the credit error - but jumped back up on Wednesday morning 

    Sources, however, told the WSJ that millions were impacted, with one banking official saying as many as 18 percent of applicants during the three-week glitch period had their credit scores affected by 8 points. 

    Another source told the outlet that one auto lender saw 10 percent of its applicants have inaccurate credit scores, with several thousands seeing their score affected by up to 25 points. 

    One source even claimed that a small number of loan applicants went from having no credit scores to a score in the 700s, and vice versa. 

    During the affected period from March to April, one industry expert suggested that mortgage lenders in the US sought about 2.5million credit scores to see if applicants were eligible. 

    But because lenders normally seek scores from all three credit reporting companies - Equifax, Experian, and TransUnion- the impact of Equifax's glitch may be blunted, according to some experts. 

    Even the smallest changes can have lasting effects on what interest rates and loans consumers can get. Typically, the higher the credit score, the more likely an applicant will get approved for a loan at a lower interest rate. 

    Mark Begor (pictured) Equifax's chief executive who is believed to earn around $16million a year in his position, had acknowledged the glitch in June at an investors' conference, claiming that the impact was 'going to be quite small' and 'not something that's meaningful to Equifax'
    +8
    View gallery

    Mark Begor (pictured) Equifax's chief executive who is believed to earn around $16million a year in his position, had acknowledged the glitch in June at an investors' conference, claiming that the impact was 'going to be quite small' and 'not something that's meaningful to Equifax'

    Equifax also breaks down consumers' credit scores into five categories: poor, fair, good, very good and excellent, and a change of 25 points can make all the difference. 

    If a consumer with an excellent score of 775 saw their credit dip by 25 points, it would drop them to the very good category and cause them to miss out on the best interest rates. 

    Lenders are now scratching their heads on how to remedy the issue, with some considering providing consumers with new loans to get a better interest rate and allowing those who were rejected to reapply, the WSJ reported. 

    'We do not take this issue lightly,' Singh said in a statement as he added that Equifax was working on a solution with lenders and providing updated credit information. 

    Immediately following the news of the blunder, Equifax saw its stock drop by 2.12 percent on Tuesday, closing on its first low since the stock saw a large rise last week. 

    This is not the first time Equifax has got into trouble. Back in 2017, the credit rating giant fell victim to a hack that exposed the personal information of nearly 150 million American consumers. 

    The breach led to the ouster of former CEO Richard Smith after regulators found the company failed to take basic steps to protect consumers' data, with Equifax forced to pay $700 million in fines.  

    The glitch is likely to land Equifax in hot water with the Consumer Financial Protection Bureau, which regulates America's three main credit-reporting companies - Equifax, TransUnion and Experian.

    The agency is currently investigating how the three companies handle consumer disputes after the companies agreed to strip tens of billions of dollars in medical debt from consumer's credit reports. 

Views: 405

Comment

You need to be a member of CaribbeanFever / FeverEyes / CaribFever to add comments!

Join CaribbeanFever / FeverEyes / CaribFever

Comment by John Smith on August 5, 2022 at 4:33am
Comment by vaughn mitchell on August 4, 2022 at 7:14pm
The biggest harm to consumers, credit score, get rid of all three on them.

Celebrate your BIRTHDAY with CaribbeanFever on 107.5 WBLS, NY

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

FOR ALL YOUR DANCEHALL AND REGGAE NEWS CLICK PIC BELOWreggae dancehall queen 4

}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}

{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{

PUMP IT! or DUMP IT! SAT & SUN NIGHT on Caribbean Fever 107.5 WBLS NY (GET YOUR NEW MUSIC PLAYED) SONG{S} BEING VOTED ON ARE {------ ) and {----- }

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

CARIBBEAN NEWS

Caribbean Fever with the best Caribbean News online!

 

SOME TOP BLOGS

Groups

© 2022   Created by Caribbean Fever.   Powered by

Badges  |  Report an Issue  |  Terms of Service