Equifax Clarifies Policy After Outcry Over Consumers' Legal Rights Following Hack

Carla Herreria
Updated

Equifax issued a statement Friday saying that victims of a recent massive security breach won’t have to waive their right to file a class action lawsuit against the company, after people noticed language buried in Equifax’s terms of service that barred customers from doing so.

“We have made it clear that the arbitration clause and class action waiver included in the Equifax and TrustedID Premier terms of use does not apply to this cybersecurity incident,” the company said in an update to its website.

Equifax announced Thursday that it had discovered in July it was the victim of a massive hack that exposed the personal information of an estimated 143 million Americans. Social Security numbers and credit card numbers were among the information exposed.

The company offered those affected by the hack a free one-year subscription to its credit-monitoring service TrustedID Premier. Those who opt to use Equifax’s free service will be charged after a year if they do not actively cancel their subscriptions.

Shortly after the announcement, people on social media pointed out the arbitration clause buried in the product’s terms of use, which bars customers from participating in any class action lawsuits against the company.

Equifax clarified its terms of use after New York Attorney General Eric Schneiderman on Friday called the language in question “unacceptable and unenforceable.”

Later Friday, Schneiderman said he was launching a formal investigation into Equifax’s security breach and encouraged all of Equifax’s customers to reach out to the company to see if they were affected.

So far, two class action lawsuits against Equifax have been proposed, alleging that the credit monitoring company was negligent in protecting its customers’ private information and should have spent more money protecting the data against cyberattacks.

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Limit Social Networking

Be careful with sharing your most basic information, such as full name and date of birth in your profile. As well, limit children's names, pet names and nicknames, which are often the basis for passwords and PIN numbers. You never know who might be out there trying to steal your identity.
Be careful with sharing your most basic information, such as full name and date of birth in your profile. As well, limit children's names, pet names and nicknames, which are often the basis for passwords and PIN numbers. You never know who might be out there trying to steal your identity.

Register To Vote At Your Current Address

If you’re not registered, a criminal could register you at another address. When you move homes, always deregister and re-register at the new one. That way, the people who move into your previous home can’t offer apparent proof that they are you.
If you’re not registered, a criminal could register you at another address. When you move homes, always deregister and re-register at the new one. That way, the people who move into your previous home can’t offer apparent proof that they are you.

Check Your Credit Report Often

Check your borrowings and repayment record to spot unfamiliar accounts and activity.
Check your borrowings and repayment record to spot unfamiliar accounts and activity.

Keep Your Computer/Tablet/Phone Secure

Keep your antivirus software up to day and have a firewall running. As well, if you carry a laptop, tablet or phone don't leave it in your car or other places it may be tempting to thieves.
Keep your antivirus software up to day and have a firewall running. As well, if you carry a laptop, tablet or phone don't leave it in your car or other places it may be tempting to thieves.

Know Your Online Scams

Learn about the latest online and email scams. If it sounds to good to be true, chances are it is a scam. Check out the<a href="http://netforbeginners.about.com/od/scamsandidentitytheft/ss/top10inetscams.htm"> top 10 scams of 2012.</a>

Be Wary When Using E-Commerce

Know which sites are safe and stick to those. Use secure payment methods when online shopping. Watch out for banner and pop-up ads that ask you to register or purchase free software - these could be viruses.
Know which sites are safe and stick to those. Use secure payment methods when online shopping. Watch out for banner and pop-up ads that ask you to register or purchase free software - these could be viruses.

Protect Your Passwords

Don't use the same password for every site you visit. Be careful if you record your passwords. Make sure they are in a secure place.
Don't use the same password for every site you visit. Be careful if you record your passwords. Make sure they are in a secure place.

Be Careful When Away From Home

Suspend paper delivery while away. Thieves may see piled-up papers as an opportunity to steal your mail, which includes a wealth of identity info.
Suspend paper delivery while away. Thieves may see piled-up papers as an opportunity to steal your mail, which includes a wealth of identity info.

Watch Your Wallet Or Purse

When you're out and about keep an eye on your personal things. Make sure you don't leave them unattended, and be sure to close zippers and flaps.
When you're out and about keep an eye on your personal things. Make sure you don't leave them unattended, and be sure to close zippers and flaps.

Guard Your Receipts

Don't leave your receipts at the till or ATM. Cross check your credit card bills against the receipts.
Don't leave your receipts at the till or ATM. Cross check your credit card bills against the receipts.

Protect Your SIN

Don't carry your SIN card and don't hand out the number unless necessary.
Don't carry your SIN card and don't hand out the number unless necessary.

Shred Unwanted Documents

Use a sheddar for disposing of old bills and records.
Use a sheddar for disposing of old bills and records.

Get Rid Of Old Card

Don't carry more credit cards than you need and cancel unused accounts.
Don't carry more credit cards than you need and cancel unused accounts.

This article originally appeared on HuffPost.