ATLANTA (3/1/16)--Next week, the financial institution plaintiff’s co-lead counsel in the Home Depot data breach suit will hold a conference call regarding alternative recovery offers (AROs) that MasterCard is proposing to credit unions affected by the Home Depot breach.
The call will be 10 a.m. (ET) March 9. The call-in information is (844) 286-3346; code: 61071741.
Credit unions and other financial institutions have been given a deadline of March 24 by MasterCard to accept these offers.
The AROs appear to offer credit unions a premium of an additional 10%, of what the card brand recovery processes already automatically provides to credit unions for their losses from a data breach, in exchange for a release of right to seek additional recovery via the courts.
In previous conference calls, counsel noted that typically the card issuer’s ARO falls short of what is appropriate for most financial institutions.
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.
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.
CUNA surveys found credit unions alone were hit with nearly $60 million in costs after Home Depot’s 2014 data breach and $30.6 million after Target’s 2013 data breach.