I just read something that said that the $125 was based on a finite settlement dollar amount divided by an expected number of people to choose the payment option instead of the credit monitoring. The amount anticipated was just under 250,000 people. So, if a million people sign up for the payment, you’ll get one quarter of the estimated amount. I’m guessing no one is going to see anything close to $125. I’m thinking the credit monitoring has the better value, but as Robbie pointed out, who’s protecting you? The same people who screwed up in the first place. Plus, if all you’re getting is, as others have mentioned, a free service that will constantly pester you to upgrade (sell you stuff), what’s the point. I’m apparently effected, but I’ll pass. Somehow I still think the Fox is watching the chicken coop.
From the settlement site FAQ 10:
If there are more than $31 million claims for Alternative Reimbursement Compensation, all payments for Alternative Reimbursement Compensation will be lowered and distributed on a proportional basis.
$31M/$125=248,000. So if any more than 248K people claim this option, the amount will be reduced.
I might look into the credit monitoring because it does cover all three major agencies, however, I’m not too encouraged that this is all on the up and up.
I think what is confusing to everybody is you can complete the form and select the method of payment without uploading anything. It doesn't stop you from completing if you don't upload documentation, but I bet you won't get anything since all the instructions say
"It is important for you to send documents that show what happened and how much you lost or spent, so that you can be repaid (except for money you may have spent on Equifax subscription products as explained below). If they are the same as the documents you attached in Section 2, you do not need to upload them again."
2. No more than Thirty-One Million Dollars ($31,000,000) shall be used to pay Alternative Reimbursement Compensation (the “Alternative Reimbursement Compensation Cap”). To the extent valid claims for Alternative Reimbursement Compensation exceed the Alternative Reimbursement Compensation Cap, then payments for valid Alternative Reimbursement Compensation claims shall be reduced on a pro rata basis.
Fine print reveals why a lot of people won't get the full $125. They are only going to pay out that amount until the requests hit a $31 million cap. After that, the payouts will be lowered and distributed on a proportional basis. The total pool for restitution is $380,500,000.
Thanks for the info, MichaelB. I've been meaning to look into it since the settlement details started hitting the headlines but hadn't had a chance yet. I appreciate the concise summary. Unfortunately, both DW and myself were affected. Luckily, nothing adverse in our credit reports to date. What a mess...
Except that the "up to $125" will probably be a lot less. The settlement caps damages so if a lot of people apply, we may be lucky to see $10.Signed up yesterday for DGF, DF and I. Easy money I suppose.
Except that the "up to $125" will probably be a lot less. The settlement caps damages so if a lot of people apply, we may be lucky to see $10.
I find it interesting that if you happen to be spending the year on a desert island and don't file for the money or the credit monitoring (or choose to opt out), you give up all rights to sue in the future and you get nothing.
https://www.cnn.com/2019/07/26/us/equifax-breach-settlement-questions-answered-trnd/index.html
Perhaps this is standard operating procedure? I suppose that otherwise people would be coming out of the woodwork for decades to come.
For those who have already submitted claims for this cash payment, look for an email from the settlement administrator. They’ll be asking you for the name of the credit monitoring service you already have. Or, if you want to change your mind, you’ll have a chance to switch to the free credit monitoring.
My guess is your math is a reasonable look at what might happen.MichaelB, thanks for the update.
So here's a SWAG:
147M people affected
70% never claim any part of the settlement
That leaves 44M people who claim
Half of them take the monitoring
That leaves 22M taking the cash
$31M / 22M people = $1.41 per person
Evidently, the $125 figure is based on 248K people taking the cash ($31M/$125), which is 0.17% of the 147M affected. Maybe my 15% (above) is a bit high but... 0.17%??
Perhaps the poor wording pointed out by ERD50 was intentional to get people to take the cash, which would limit the larger ongoing cost of monitoring.
I already claimed the cash, thinking it was a fixed $125 for each of us. But if 147M people all claimed the $125, it would be $18.4B, which is obviously a different universe compared to $31M. Pretty sure I'll change to monitoring when the time comes.
5. I thought I could choose $125 instead of free credit monitoring. What happened?
The public response to the settlement has been overwhelming. Millions of people have visited this site in just the first week. Because the total amount available for these alternative payments is $31 million, each person who takes the money option is going to get a very small amount. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed.
The free credit monitoring provides a much better value, and everyone whose information was exposed can take advantage of it. If your information was exposed in the data breach, and you file a valid claim before the deadline, you are guaranteed at least four years of free monitoring at all three credit bureaus (Equifax, Experian, and TransUnion) and $1,000,000 of identity theft insurance, among other benefits. The market value of this product is hundreds of dollars per year.
You can still choose the cash option on the claim form, but you will be disappointed with the amount you receive and you won’t get the free credit monitoring.
6. I want to change my claim to get free credit monitoring instead of a cash payment. Can I do that?
Yes. The settlement administrator will be sending an email to people who already submitted a claim for the alternative cash payment. In that email, you will have the option to:
1) provide additional information OR
2) switch to free credit monitoring.
We will update this page with more information after the email goes out.
You also can send an email to info@EquifaxBreachSettlement.com to make a change to your claim.