Why you probably won't get $ 125 from the Equifax settlement

If you're like me, you took off like a shot the moment you heard Equifax would pay you $ 125 just to fill out a simple form. Maybe you even considered it a fair compensation for the data breach in 2017 that exposed personal data to 147 million Americans.

But the likelihood that you actually will get a check for $ 125 is ever slimmer – because the more people sign up, the less money each person gets. In fact, there is only room for 248,000 people to get that amount.

If 1 million people ask for the money, they will qualify for only $ 31 each.

If every one of the 1[ads1]47 million affected people sign up, they will look at 21 cents.

Look, while Equifax has agreed to a $ 700 million settlement – compared to $ 880 million last quarter revenue alone – There is technically only a $ 425 million settlement for affected consumers, with the rest of the money to pay the fine.

And of the $ 425 million, it turns out that only $ 31 million is set aside for the individual $ 125 cash payments – the rest is all for free credit monitoring, refunds, or if you somehow could prove miraculously that you actually suffered identity theft as a result of the breach.

As developer Rufo Sanchez notes on Twitter it shows in lower case that after $ 31 million people are worth signing up for the $ 125 checks … they won't actually be $ 125 anymore.

(You can read the original legalese on page 36 of this PDF if you are curious. )

Proportionally reduced payments are not uncommon for large class action settlements. I got checks in the mail where it was not worth taking a trip to the bank to actually get it in.

Remember, there's also a ridiculously slim chance that you could get more than $ 125, since it also works the other way – if it's extra funds because, for example, less than 248,000 people makes a claim, the rules say that each person will get so much more money as well.

But I doubt it, with considering how far and fast the few $ 125-fast news has spread. AOC's tweet over already has 39,000 likes in just three hours. Her tweet alone could mean that a seventh of the $ 125 checks are already counted.

If you want to try something, you can't blame! – find our instructions here. We do not know how much you really get until January next year.

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