Amplifying this here so it can get pushed out as many places as it can be.
The FTC failed to account for the sheer number of people who would opt for the $125 cash out payment, so they have basically said you will get nothing:
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.
For those who don't know the whole story, in 2017 Equifax had a data breach where information on 147 million people was exposed because Equifax is basically terrible at cybersecurity 101. The company and the FTC negotiated a settlement valued at approximately $425 million. The FTC initially indicated that anyone affected by the breach could opt for (1) a one time $125 payment or (2) free credit monitoring for four years. One need not be a rocket scientist to know that $125x147,000,000 >>> $425,000,000. Indeed, as noted above, only $31,000,000 was earmarked for cash payments because the FTC and Equifax think people either (1) don't like free money or (2) would be too lazy to ask for it.
Through social media and news amplification, those opting for the $125 payment massively outpaced their assumptions. To that end, the FTC has silently posted an update to their FAQ as quoted above, hoping people won't notice, will get their $3.25 "payment" and sit down and shut up because they didn't object or opt out in time.
If you are pissed, like my friends and I are, you are in luck!
There are two options, both of which require a modicum of additional effort: (1) you can snail mail write to opt out of the settlement (if you would like to pursue your own direct lawsuit against Equifax) or (2) submit comments to the court objecting to the fairness, reasonableness, and/or adequacy of the proposed class action settlement. I am opting for option 2, but to each their own. Below is the relevant information for each:
Opting Out
If you are a member of the settlement class but do not want to remain in the class, you may exclude yourself from the class (also known as “opting out”). If you exclude yourself, you will lose any right to participate in the settlement, including any right to receive the benefits outlined in the Notice.
If you decide on this option, you may keep any rights you have, if any, against Equifax and you may file your own lawsuit against Equifax based upon the same legal claims that are asserted in this lawsuit, but you will need to find your own attorney at your own cost to represent you in that lawsuit. If you are considering this option, you may want to consult an attorney to determine your options.
IMPORTANT: You will be bound by the terms of the Settlement Agreement unless you submit a timely and signed written request to be excluded from the settlement. To exclude yourself from the settlement you must mail a “request for exclusion,” postmarked no later than 11/19/2019, to:
Equifax Data Breach Class Action Settlement Administrator
Attn: Exclusion
c/o JND Legal Administration
P.O. Box 91318
Seattle, WA 98111-9418
This statement must contain the following information:
- The name of this proceeding (In re: Equifax Inc. Customer Data Security Breach Litigation, Case No. 1:17-md-2800-TWT, or similar identifying words such as “Equifax Data Breach Lawsuit”);
- Your full name;
- Your current address;
- The words “Request for Exclusion” at the top of the document or a statement that you do not wish to participate in the settlement; and
- Your signature.
If you do not comply with these procedures and the deadline for exclusions, you will lose any opportunity to exclude yourself from the settlement class, and your rights will be determined in this lawsuit by the Settlement Agreement if it is approved by the Court, and you may not recover under any other settlement agreement regarding the claims released as part of the settlement.
Objecting
If you are a Settlement Class Member, you have the right to tell the Court what you think of the settlement. You can object to the settlement if you don’t think it is fair, reasonable, or adequate, and you can give reasons why you think the Court should not approve it. You can’t ask the Court to order a larger settlement; the Court can only approve or deny the settlement as it is.
To object, you must send a letter stating that you object to the settlement. Your objection letter must include:
- The name of this proceeding (In re: Equifax Inc. Customer Data Security Breach Litigation, Case No. 1:17-md-2800-TWT, or similar identifying words such as “Equifax Data Breach Lawsuit”);
- Your full name and current address;
- Your personal signature (an attorney’s signature is not enough);
- A statement indicating why you think that you are a member of the settlement class;
- A statement with the reasons why you object, accompanied by any legal support for your objection;
- A statement identifying all class action settlements to which you have objected in the previous five (5) years; and
- A statement as to whether you intend to appear at the Fairness Hearing, either in person or through a lawyer, and if through a lawyer, identifying your lawyer by name, address, and telephone number, and four dates between 11/19/2019 and 12/05/2019 during which you are available to be deposed by counsel for the Parties.
Additionally, if you are represented by a lawyer and your lawyer intends to speak at the Fairness Hearing, your written objection letter must include:
- A detailed statement of the specific legal and factual basis for each and every objection; and
- A detailed description of any and all evidence you may offer at the Fairness Hearing, including copies of any and all exhibits that you may introduce at the Fairness Hearing.
Additionally, if you are represented by a lawyer, and your lawyer intends to seek compensation for his or her services from anyone other than you, your written objection letter must include:
- The identity of all lawyers who represent you, including any former or current lawyer who may be entitled to compensation for any reason related to the objection;
- A statement identifying all instances in which your lawyer or your lawyer’s law firm have objected to a class action settlement within the preceding five (5) years, giving the case name, case number, and court in which the class action settlement was filed;
- A statement identifying any and all agreements or contracts that relate to the objection or the process of objecting—whether written or oral—between the you, your lawyer, and/or any other person or entity;
- A description of your lawyer’s legal background and prior experience in connection with class action litigation; and
- A statement regarding whether your lawyer’s compensation will be calculated on the basis of a lodestar, contingency, or other method; an estimate of the amount of fees to be sought; the factual and legal justification for any fees to be sought; the number of hours already spent by your lawyer and an estimate of the hours to be spent in the future; and the lawyer’s hourly rate.
To be considered by the Court, your objection letter must be filed electronically with the Court by 11/19/2019 or mailed, postmarked no later than 11/19/2019, to the following addresses:
Equifax Data Breach Class Action Settlement Administrator
Attn: Objection
c/o JND Legal Administration
P.O. Box 91318
Seattle, WA 98111-9418
If you do not comply with these procedures and the deadline for objections, you may lose any opportunity to have your objection considered at the Fairness Hearing or otherwise to contest the approval of the settlement or to appeal from any orders or judgments entered by the Court in connection with the proposed settlement. You will still be eligible to receive settlement benefits if the settlement becomes final even if you object to the settlement.
The Court has scheduled a Fairness Hearing to listen to and consider any concerns or objections from Settlement Class Members regarding the fairness, adequacy, and reasonableness of the terms of the Settlement Agreement. That hearing will take place on 12/19/2019 at 10:00 a.m. before the Honorable Thomas W. Thrash Jr., at the United States District Court for the Northern District of Georgia located in Courtroom 2108 of the Richard B. Russell Federal Building and United States Courthouse, 75 Ted Turner Dr., SW, Atlanta, GA 30303-3309. This hearing date and time may be moved. Please refer to the settlement website for notice of any changes.
Equifax is hoping people's laziness wins out, but I can assure you if a judge gets 500k-1M pissed off letters, they will likely refuse to certify the settlement and send the FTC and Equifax back to the drawing board.