CUNA filed its lawsuit Wednesday against Equifax, a suit brought in the wake of a data breach resulting in hackers accessing information on 145.5 million consumers and payment card data of more than 200,000 consumers. Several credit unions will join the lawsuit as well.
“We filed this lawsuit because our member credit unions are very concerned with the effects of this breach, everything from re-issuing compromised cards to adding uncertainty to the loan underwriting process,” said CUNA President/CEO Jim Nussle. “Credit unions will bear substantial costs dealing with the fallout from this breach, and this lawsuit is a step toward recouping costs and requiring stronger data security measures in the future.”
Compromised information includes consumers’ Social Security numbers, birthdays, addresses and driver’s license numbers.
Credit unions and other financial institutions will likely deal with a number of long-term costs resulting from the breach. This includes canceling and reissuing compromised cards, reimbursing members for fraudulent charges, increasing fraud monitoring, taking action to mitigate identity theft, sustaining reputational harm and notifying consumers of potential fraudulent activity.
CUNA hosted a member-only call Tuesday to discuss legal options for credit unions as a result of the breach. CUNA members can register and listen to a recording of the call, which will be available in the coming days.
CUNA also remains engaged with Congressional hearings and other activities related to the breach.