Not So Fast

That $125 Equifax settlement check will likely be a lot less

Many folks here in the Twin Cities and across the nation are looking forward to some free money. News of a settlement in the Equifax credit reporting agency data breach is all over social media. The company has agreed to pay $700 million in penalties and compensation to the 17 million Americans whose personal information was compromised.

There’s a website where people can see if their data was affected. On the same site they can also file a claim. Those who suffered actual damages and can prove it — things like identity theft, time spent canceling credit cards and the like — they can put in for additional money. But for most there is the option to receive free credit monitoring or, and this is where the free money part comes in, a check or prepaid debit card for $125.00.

That’s got a lot of people excited. But chances are that cash won’t be coming. At least not that much.

You see, as The Verge website reported last week, $275 million of the settlement is going to the government in penalties. That leaves $425 million.

Of that, most is set aside for the optional credit monitoring service and for those consumers who suffered identity theft or other expenses they can document.

Only $31 million is set aside to pay for “up to” $125 each for the rest of the claimants. That “up to” part is key.

If only 248,000 sign up, then all will get $125. But it’s safe to say, with all the publicity, more will be staking a claim.

If 1 million people sign up, then everyone gets just $31, And if by some miracle all 147 million who were affected put in for the cash, those checks would be about 21 cents each.

One more thing. The deadline to sign up is in January of 2020 and the money won’t be paid out before all the claims are in. So don’t think your check will be in the mail anytime soon — no matter how much or how little that check might be.