8 ms·

My understanding was that the equifax settlement was for 6-700 million, yet this page indicates that there is only 31 million set aside to cover cash payouts to

by harryh 7y ago

My understanding was that the equifax settlement was for 6-700 million, yet this page indicates that there is only 31 million set aside to cover cash payouts to class members. I'm curious about where the rest of the money went. Does anyone know?

spocklivelong 7y ago
I was wondering that too. Can anyone shed some light here?
- paulgb 7y ago
  Summarized from the settlement[1]: - Compensation for time spend ($25/hr); capped at 31 million (different pool from the $125) - Reimbursement for up to $20,000 in documented losses per person. - Cost of Experian credit monitoring for those who choose credit monitoring instead of the $125. The size of the fund created for these benefits is $380.5 with the possibility of expanding by another $125 million for cash compensation. [1] https://int.nyt.com/data/documenthelper/1484-proposed-equifax-data-breach-s/cd3e6bc513a9ba71c129/optimized/full.pdf#page=1 https://int.nyt.com/data/documenthelper/1484-proposed-equifa...
koolba 7y ago
I’m sure the lawyers get paid in cash.
jupiter90000 7y ago
I could be misreading it but sounds like 31mil is the limit on "alternative cash payment" for those who opt out of the credit monitoring. Seems the rest is used for those who are opting for getting credit monitoring, then remediation for those who actually had identity theft happen, identity restoration services, and probably related provable damages to having identity stolen or something tangible damaged from the breach. So seems like the difference may be between those who just had data exposed in the breach (credit monitoring or small cash payment), vs those with additional provable damages from the breach (identity theft, damaged credit, dealing with damages/fallout from those, etc). Not saying I agree, just what I can see in settlement docs. The FTC could really be communicating this all better here. Edit: link to proposed settlement doc https://www.ftc.gov/system/files/documents/cases/172_3203_equifax_proposed_order_7-22-19.pdf https://www.ftc.gov/system/files/documents/cases/172_3203_eq...
beowulfey 7y ago
It /might/ be set aside to handle actual cases of identity theft. Going through the claim, there is an option to reclaim up to $20,000 if your identity had been stolen.
lioeters 7y ago
According to the New York Times: "Almost half the settlement — $300 million — will go toward American consumers who were harmed by the breach, according to settlement documents filed in federal court in Atlanta. The company also agreed to pay $275 million in fines to end investigations by the Consumer Financial Protection Bureau, the Federal Trade Commission and 48 states, plus the District of Columbia and Puerto Rico." https://www.nytimes.com/2019/07/22/business/equifax-settlement.html https://www.nytimes.com/2019/07/22/business/equifax-settleme... According to Equifax's FAQ: "the total amount available for these alternative payments is $31 million" So I'm wondering the same thing: what happened to the rest of the amount set aside for the victims, about $270 million? --- EDIT: Interesting note in the article linked above: If all 147 million victims of the breach were to take part, the monitoring services would cost Equifax more than $2 billion. “If people want Equifax to pay more, sign up for credit monitoring,” said Norman E. Siegel, a lawyer representing consumers in the settlement.
- eblanshey 7y ago
  > The company also agreed to pay $275 million in fines to end investigations by the Consumer Financial Protection Bureau, the Federal Trade Commission and 48 states, plus the District of Columbia and Puerto Rico. Equifax's mess-up did damage to American citizens by exposing their information. Why isn't most, if not all, of the money going to them? "Fines to end investigations" just sounds like a bribe -- the government itself wasn't affected by this, and yet they are being paid as much as the people who were affected -- more so considering only the 31 million pot.
  - basch 7y ago
    Wouldn't the information have to surface first to call it exposed?
    - craftinator 7y ago
      No. You're exposed when you walk through your town naked, not when you see pictures of it later on in the day.

by harryh 7y ago

spocklivelong 7y ago

I was wondering that too. Can anyone shed some light here?

paulgb 7y ago
Summarized from the settlement[1]: - Compensation for time spend ($25/hr); capped at 31 million (different pool from the $125) - Reimbursement for up to $20,000 in documented losses per person. - Cost of Experian credit monitoring for those who choose credit monitoring instead of the $125. The size of the fund created for these benefits is $380.5 with the possibility of expanding by another $125 million for cash compensation. [1] https://int.nyt.com/data/documenthelper/1484-proposed-equifax-data-breach-s/cd3e6bc513a9ba71c129/optimized/full.pdf#page=1 https://int.nyt.com/data/documenthelper/1484-proposed-equifa...

koolba 7y ago

I’m sure the lawyers get paid in cash.

jupiter90000 7y ago

I could be misreading it but sounds like 31mil is the limit on "alternative cash payment" for those who opt out of the credit monitoring. Seems the rest is used for those who are opting for getting credit monitoring, then remediation for those who actually had identity theft happen, identity restoration services, and probably related provable damages to having identity stolen or something tangible damaged from the breach. So seems like the difference may be between those who just had data exposed in the breach (credit monitoring or small cash payment), vs those with additional provable damages from the breach (identity theft, damaged credit, dealing with damages/fallout from those, etc). Not saying I agree, just what I can see in settlement docs. The FTC could really be communicating this all better here. Edit: link to proposed settlement doc https://www.ftc.gov/system/files/documents/cases/172_3203_equifax_proposed_order_7-22-19.pdf https://www.ftc.gov/system/files/documents/cases/172_3203_eq...

beowulfey 7y ago

It /might/ be set aside to handle actual cases of identity theft. Going through the claim, there is an option to reclaim up to $20,000 if your identity had been stolen.

lioeters 7y ago

According to the New York Times: "Almost half the settlement — $300 million — will go toward American consumers who were harmed by the breach, according to settlement documents filed in federal court in Atlanta. The company also agreed to pay $275 million in fines to end investigations by the Consumer Financial Protection Bureau, the Federal Trade Commission and 48 states, plus the District of Columbia and Puerto Rico." https://www.nytimes.com/2019/07/22/business/equifax-settlement.html https://www.nytimes.com/2019/07/22/business/equifax-settleme... According to Equifax's FAQ: "the total amount available for these alternative payments is $31 million" So I'm wondering the same thing: what happened to the rest of the amount set aside for the victims, about $270 million? --- EDIT: Interesting note in the article linked above: If all 147 million victims of the breach were to take part, the monitoring services would cost Equifax more than $2 billion. “If people want Equifax to pay more, sign up for credit monitoring,” said Norman E. Siegel, a lawyer representing consumers in the settlement.

eblanshey 7y ago
> The company also agreed to pay $275 million in fines to end investigations by the Consumer Financial Protection Bureau, the Federal Trade Commission and 48 states, plus the District of Columbia and Puerto Rico. Equifax's mess-up did damage to American citizens by exposing their information. Why isn't most, if not all, of the money going to them? "Fines to end investigations" just sounds like a bribe -- the government itself wasn't affected by this, and yet they are being paid as much as the people who were affected -- more so considering only the 31 million pot.
- basch 7y ago
  Wouldn't the information have to surface first to call it exposed?
  - craftinator 7y ago
    No. You're exposed when you walk through your town naked, not when you see pictures of it later on in the day.