You get your Equifax money. It can only take a while
Last week Equifax agreed to settle a $ 575 million settlement – up to $ 700 million – over the largest data breach in 2017. It gives affected consumers the right to free credit monitoring offers or a $ 125 payout, plus the potential for more money back if you can document losses as a result of the incident. There's not a lot of money in terms of the value of your personal information, but there's one more pressing issue: Do you actually need to get it at all?
The answer is not as clear as it should be, largely because the $ 125 payouts are initially limited to $ 31 million. And although it's still unclear exactly how many people submitted so far, the FTC on Wednesday published a blog post noting that the settlement administrator has received an "unexpected number of claims." The materials related to the settlement have always said very carefully that the payout will be "up to" $ 1[ads1]25, and with $ 31 million to go around, the figure begins to fall after 248,000 claims.
"The public response to the settlement has been overwhelming," the FTC wrote. "Because the total amount available for these alternative payments is $ 31 million, each person taking the money option will receive a very small amount. Nowhere near $ 125 they could have gotten had there not been such a huge number of claims filed. "
The FTC's post triggered an understandable furor. If you knew in advance that you were likely to get less than the promised $ 125, you may have opted for an alternative offer of free credit monitoring for 10 years. Or you may not have joined The settlement at all.
"Don't miss an opportunity to inflict some pain on Equifax."
Marc Rotenberg, EPIC
But not everything is lost, and there is still a decent chance that Equifax pay all $ 125. As Slate points out, the $ 31 million cap will lift, provided Equifax has not spent the full $ 425 million in the "Consumer Fund" – it has pledged to cover people who can specifically document losses as a result of the breach – for four and a half years. At that point, what remains of the $ 425 million will be spent on the $ 125 payouts, presenting much better, if too late, odds.
The FTC argues that victims should choose kredittovervåkningst disgusting anyway, because it is a "better value" and will provide long-term protection. But even though this proposal has some advantages, especially given that credit monitoring comes with $ 1,000,000 for identity theft insurance, it's not an obvious choice. Claiming the money puts cold hard cash – not a lot of cash, but a gesture in the general direction of cash – back into the hands of consumers. You are probably already eligible for at least one year of free credit monitoring through previous data breaches like Marriott. And taking credit monitoring means Equifax pays the rival Experian to offer you the service – additional fuel to the credit data industry.
When the FTC says "you will be disappointed with the amount you receive," it minimizes this distinction, and excludes the possibility that years from actually can be lifted. The FTC told WIRED in a statement, "The settlement was designed with the 10-year credit monitoring product as the major source of relief for affected consumers because it was seen as the best source of future identity theft protection." If you applied for cash and want to switch to credit monitoring, you can email info@EquifaxBreachSettlement.com and let them know.
The bigger problem, says Marc Rotenberg, president and CEO of the Electronic Privacy Information Center, is that without strong congressional policies – such as free credit monitoring and credit reports for all, strict federal data breach laws and even a dedicated federal privacy agency – there is no perfect way to negotiate adequate settlement or other consumer redress in the event of events such as the Equifax breach.
"People should exercise their right and ask for $ 125. It's possible that the final figure is smaller, but I really think people should take advantage of this," says Rotenberg. He also encourages consumers to apply for larger payments if they can show that they suffered losses as a result of the breach.
It is also the frustrating reality that the FTC itself did not offer Equifax as part of the scheme, because the agency lacks a preliminary statute to impose first-time offenders. Last week, the agency asked Congress to pass new legislation that would give this power. But Rotenberg notes that without a comprehensive response plan for data breaches within the federal government, a settlement like Equifax might not have been much more effective even with an FTC fine.
"Should there be more money? Yes. But agencies like the FTC simply do not have the authority, resources or expertise to function as a privacy agency," he says. "It's a structural thing that Congress needs to get involved in. In the meantime, don't miss an opportunity to inflict Equifax a little pain, because they certainly inflicted a lot of pain on us."
When you get a check from the settlement over the next decade, don't forget the most important part. Even if it's just a dollar – cash it.
