Mass. League Is Calling For Lawsuit In TJX Data Breach

FRAMINGHAM, Mass. - Credit unions affected by the massive security breach at TJX have notified the national retailer they will seek compensation for hundreds of thousands of dollars, or more, of costs associated with recalling and reissuing credit cards to protect their members against fraudulent activity.

The Massachusetts league sent a letter to the company notifying TJX of its claims for repayment of costs. League CEO Dan Egan said numerous credit unions have begun reporting fraudulent charges on their accounts, which they expect to grow significantly because of the scope of the data breach at the owner of TJ Maxx, Marshall's, Home Goods and A.J. Wrights.

"We're just trying to position ourselves. Our costs are pretty steep for the replacement of cards," Egan told the Credit Union Journal. The league and other CU representatives are also talking with CUNA Mutual Group, about possible litigation to recover the costs.

A representative for CUNA Mutual said no decisions have been made yet on a legal action. Egan said dozens of CUs in Massachusetts, New Hampshire and Rhode Island, have replaced 'well over 100,000 cards' because of the breach. In a letter to TJX, Jim Blake, HarborOne CU CEO, said his credit union has incurred over $100,000 in costs alone in recalling and reissuing its cards. Meantime, at least two class action suits have been filed by consumers affected by the TJ Maxx breach.