FTC blames applicants for getting hacked by Equifax, won’t pay out settlement figure because they fined Equifax too little

America’s trade watchdog has officially told millions in the US not to apply for the $125 it promised each of them as part of the deal it struck with Equifax – and instead take up an offer of free credit monitoring.

In a memo on Wednesday, FTC assistant director Robert Schoshinski said the regulator has been overwhelmed by people filing claims against Equifax after the biz was cyber-looted by hackers in 2017.

He then warned that, because the settlement with the mega-hacked outfit had been capped, it is very unlikely people will end up receiving that promised $125 each. In fact, the deal may be worth no more than 21 cents. We note that the FTC website folks can file claims through, ftc.gov/equifax, no longer mentions a $125 option, whereas the settlement website it redirects to still offers the cash lump sum.

“There is a downside to this unexpected number of claims,” noted Schoshinski.

“The pot of money that pays for that part of the settlement is $31 million. A large number of claims for cash instead of credit monitoring means only one thing: each person who takes the money option will wind up only getting a small amount of money. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed.”

Source: If you could forget the $125 from Equifax and just take the free credit monitoring, that would be great – FTC • The Register

Incredibly retarded by the FTC – they knew how many people were hacked, so they should have expected around that many claimants.

Robin Edgar

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