NAFCU Statement in response to Credit Union Times report of the dissolution of proposed $19 million Target settlement with MasterCard on data breach
WASHINGTON, DC (May 22, 2015) — National Association of Federal Credit Unions (NAFCU) Senior Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement in response to a Credit Union Times article today that reported dissolution of the proposed $19 million settlement from Target Corp. with MasterCard Inc. based on the retailer’s huge data breach in 2013.
“Credit unions deserve to be fully compensated for their losses that were no fault of their own,” said Hunt. “The failure to opt in to the settlement by financial institutions sends a strong signal to card companies that the current reimbursement system does not work and financial institutions need to be made whole.”
According to the article, the proposed settlement failed to receive the required 90 percent participation rate from issuers, which means that the settlement will not happen.
When the settlement was first announced, NAFCU had stated that it hoped card issuers would receive more than pennies on the dollar.
“Litigation does nothing to prevent future breaches,” said Hunt. “That is why we continue to urge Congress to act to protect consumers’ financial information by enacting stronger standards and holding retailers and merchants directly accountable for their data breaches.”
NAFCU was the first financial trade organization to call for national data security standards for retailers, and it continues to push for legislative action on Capitol Hill. NAFCU is a member of the Payments Security Task Force, a diverse group of participants in the payments industry that is driving a discussion on payments system security. NAFCU is also a member of the Financial Services Sector Coordinating Council and the Financial Services Information Sharing and Analysis Center, which work on infrastructure cybersecurity.
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.