MEMBERS of a Texan credit union can get their hands on up to $5000 as the company agrees to a settlement over a data breach.
You could score up to $500 of the settlement pot for out of pocket expenses including bank fees, communication charges and travel expenses.
The Generational Federal Credit Union is looking to be out of pocket thousands of dollars after data breach[/caption]
The company has not admitted wrongdoing but has agreed to a payout to resolve the class action lawsuit[/caption]
Members who experienced “extraordinary loss” due to the data breach could receive additional compensation of up to $4500.
Members claiming this amount must have documented their monetary losses.
In the class action lawsuit brought against Generations Federal Credit Union, a Texas-based credit union that offers banking services, documents claim members’ data was breached in December 2022.
According to the lawsuit, the credit union “failed to protect consumers from [the data breach] … [which] compromised sensitive information, such as Social Security numbers, financial account numbers and more”.
The breach occurred between December 13 and December 15 of that year.
The credit union has refused to admit wrongdoing, however, has agreed to pay an “undisclosed sum” to resolve the lawsuit.
The settlement payments can be claimed by individuals who received a written notification from the union, stating their personal information was potentially compromised.
Affected members are also eligible for two years of free three-bureau credit monitoring and identity theft protection with at least $1 million in identity theft insurance.
The union has also since agreed to enforce security-related improvements to better protect its customers’ data.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
Customers who reside in the US and who were mailed a notification of the potential data breach are eligible, but must have proof of purchase.
Documents for the criteria include the documentation of losses, such as bank statements, phone bills, postage receipts and gas receipts.
Members have until September 15 to submit a claim.
This comes after American company Community Care Alliance agreed to pay out over $1 million over a similar data breach.
The company provides several healthcare-related services, as well as housing and other services to communities in Rhode Island.
They were hit with allegations that it failed to protect patient information in a 2024 data breach.
A cyber security attack compromised sensitive information including Social Security numbers.
The company also agreed to settle without admitting any wrongdoing.
