News & Information

Lawsuit presses the point: stop the data breaches!

by Christine Henzig, Director of Communications Jul 17, 2015

Your League’s involvement in a class action lawsuit against Home Depot aims to seek redress for credit unions harmed by costly data breaches as well as amplify advocacy for legislative change.

The suit:
  • Seeks monetary recovery for credit unions adversely affected by data breaches
  • Seeks a court order requiring the company to tighten its data security efforts 
  • Involves 60+ plaintiffs, including other state credit union Leagues, individual credit unions, the Credit Union National Association and even some banks.
  • Testifies to the seriousness of the problem and our relentlessness to stop it while we advocate for a legislative remedy. If you have yet to contact your legislators, please take a minute now to send them a pre-written (editable) email (under the Federal Issues tab) urging support for H.R. 2205 and S.961. So far, Wisconsin Activists have made less than half the number of contacts toward our grassroots goal.
“Until such time as Congress acts to hold negligent merchants accountable, the League Board felt it needed to enter the lawsuit to alert merchants that credit unions will pursue every option to hold them responsible,” said League President & CEO Brett Thompson.

Just two recent breaches that affected Target and Home Depot cost credit unions and their members $90 million. A deal that could have repaid financial institutions for some of the costs tied to the Target breach failed recently because fewer than 90% of the financial institutions affected accepted the terms of the deal. Wisconsin credit unions suffered $600,000 in losses related to the Target breach.

The credit union industry has been advocating to stop the data breaches affecting credit unions, which have long been a barrier to more effectively serving members. The costs tied to data breaches - which include blocking transactions, reissuing cards, increasing staff at call centers, monitoring member accounts and absorbing fraud-related losses - comes at the expense of all members because of the impact such losses have on a credit unions' balance sheet. 

Questions? Contact Sarah Wainscott at (608) 514-0086.
 

The Unite for Good effort is an internal growth strategy developed by CUNA in conjunction with its Board, state leagues, credit unions and system partners. The plan's action steps–to remove barriers, increase awareness and foster service excellence–are aimed at helping more credit unions become their members' primary financial institution by compelling members to see credit unions as their best financial partner. Read more articles in our Unite for Good series.