To the Maxx: CUs Seek Recompense

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 CU League sent a letter to the company, which is located just a few miles away, notifying TJX of its claims for repayment of costs. Dan Egan, president of the Massachusetts league, said yesterday that 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 Massachusetts league and other credit unions representatives are also talking with their insurer, CUNA Mutual Group, about possible litigation to recover the costs. A representative for CUNA Mutual, which is still litigating over a similar data breach at BJ Wholesalers three years ago, said yesterday no decisions have been made yet on a legal action. Egan said dozens of credit unions in the three states he represents, Massachusetts, New Hampshire and Rhode Island, have replaced ‘well over 100,000 cards’ because of the TJ Maxx breach. In a letter to TJX, jim Blake, the chairman of the Massachusetts league and president of HarborOne CU, said his credit union has incurred over $100,000 in costs alone in recalling and reissing its cards. Meantime, at least two class action suits have been filed by consumers affected by the TJ Maxx breach seeking compensation for costs related to resolving credit disputes and fraud on their accounts.