Credit Union Sues Target Over Credit Card Hack

A credit union in Pennsylvania has filed a lawsuit, one that could potentially include 100 other credit unions as plaintiffs, against Target in an attempt to recoup is losses in the wake of the retailer’s recent massive data breach.

The Pittsburgh Post-Gazette reports that First Choice Federal Credit Union in New Castle, PA, filed the suit in a federal court in Pittsburgh on Friday.

The breach, which occurred during the height of the holiday shopping season, exposed credit and/or personal information for more than 100 million Target shoppers.

Some banks, like JPMorgan Chase and Citi, have proactively replaced debit cards for customers affected by the theft and millions of other consumers have taken it upon themselves to have their debit and credit cards replaced as a precaution.

The First Choice complaint says that it and other financial institutions have been slammed with “significant costs associated with, among other things, notifying its members of issues related to the Target Data Breach, closing out and opening new customer accounts, reissuing members’ cards, and/or refunding members’ losses resulting from the unauthorized use of their accounts.”

Last week, the Consumer Bankers Association estimated that its member institutions have already spent more than $150 million to replace cards, figuring an average replacement cost of $10/card.

The suit seeks compensation for losses, attorney fees and “an order enjoining Defendant from any further improper retention of customer data.”