When you go the bank to ask for a loan the bank relies on information gsthering by companies like Equifax. It is why it is recommended to check your information at least once a year. In 2017, Equifax revealed about 150 million people’s information may have been compromised, since then besides ensuring it never happens again, Equifax has been taking charges against the possible settlements. In an article by Pete Schroeder of Reuters, Equifax took at $690 million charge in the first quarter. The company will pay to the regulators and close all law suits with additional $10 million charge.
The money breaks down $300 million for free credit monitoring for 10 years, $80.5 million for litigation costs, $175 million to states and $100 million to the Consumer Financial Protection Bureau.
In addition Eqifax will review its security policies will a government appointed third party. Equifax’s Board of Directors will be required to certify annually it has complied with the standards.
Linking to dividend paying stocks, when things go wrong there are prices to pay and lost of independence is one of them. In the case of Equifax the Board should have been approving security measures, now they are required to. Makes you wonder what existed beforehand.
There are more questions than answers, till the next time- to raising questions.