ATLANTA (2/9/16)--Credit unions and other financial institutions have until Thursday to determine if they will accept alternative recovery offers (ARO) from Visa regarding the Home Depot data security breach.
The Credit Union National Association (CUNA) reminds that credit unions--fully informed of their legal rights--should make a decision based on their own situation.
In a Jan. 20 conference call, plaintiffs’ counsel noted that the amounts offered through the card issuer’s ARO fall short of what is appropriate for most institutions. Counsel is recommending that credit unions do not accept the ARO as recovery through the class action suit could be greater than the initial settlements proffered by Visa.
Financial institutions that decline the ARO preserve their ability to participate in any litigation recovery that might result from the class action matter, counsel said.
CUNA has been heavily involved in the issue of merchant data breaches by corresponding and meeting with federal lawmakers and their staffs and will continue all efforts to ensure any and all data security-related bills afford credit union members with the greatest protection possible.
Regarding similar communications from MasterCard, U.S. District Judge Thomas Thrash also ordered Home Depot to turn over settlement communications to plaintiff financial institutions (Daily Report Feb. 8).
Plaintiffs are entitled to review facts, documents, testimony and communications "that would reasonably bear on the question of whether communications with putative class members have been misleading or coercive," Thrash said.
He also ordered the Atlanta-based retail giant to produce all preliminary and final assessments sent to the company by MasterCard relating to a 2014 data breach that compromised personal information of 56 million consumers.