Data analytics giant Equifax has been accused by a pair of home mortgage lenders of monopolizing the market for electronic income and employment verification services, leading to higher prices.
The proposed class action was filed the in Philadelphia federal court on Tuesday, alleging Equifax had a “stranglehold” over a verification process that is a critical part of consumer finance.
Lenders, property managers and others rely on their quick ability to electronically verify an applicant’s income and employment for mortgages, car loans and rental apartment agreements, according to the lawsuit. Manually calling employers can be slow.
The lawsuit alleged Equifax, through its Equifax Workforce Solutions unit, has violated antitrust law through exclusive contracts and buying up would-be competitors. The industry domination, according to the lawsuit, has allowed Equifax to charge for its services “far higher than a competitive market would bear.”
The full article can be viewed here: https://www.reuters.com/legal/litigation/equifax-hit-with-antitrust-class-action-over-work-verification-services-2024-05-29/
