Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
TJX settlement approved by Visa FIs
FRAMINGHAM, Mass. (12/21/07)--Financial institutions representing more than 95% of eligible U.S. Visa accounts potentially affected by The TJX Cos. data breach have accepted an alternative recovery offer under TJX's previously announced settlement, Visa told the Credit Union National Association (CUNA) Thursday. The settlement is with Visa U.S.A. Inc., Visa Inc., and TJX's U.S. acquiring bank. Completion of the deal was pending acceptance by 80% of the financial institutions. Under the settlement, TJX agreed to fund up to $40.9 million in alternative recovery payments. These costs are already reflected in the charge related to the computer intrusions that TJX took in its fiscal 2008 second quarter. Credit unions and other financial institutions that accepted the alternative recovery offer will receive their payments by Dec. 27. Each accepting issuer has waived certain rights to any other recovery through litigation or otherwise and provided certain releases of TJX and its U.S acquiring banks. "Ensuring that credit unions issuing Visa cards affected by the TJX data breaches were included in loss recovery efforts has been very important to CUNA," said Eric Richard, CUNA's general counsel, "and we have endeavored to assist our members as much as possible throughout this process to provide the latest developments as we learned of them. "This appears to be a good outcome for financial institutions, but we will continue to monitor the situation as the settlement is finalized," Richard said. CUNA discussed with credit unions their options for pursuing recovery of losses related to Visa cards involved in the TJX breaches, including the $40.9 million settlement with Visa and Fifth Third Bancorp, TJX's credit card payments processing bank. The agreement does not include other card associations such as MasterCard. "We do not have a reason to believe at this time that MasterCard will be offering a separate settlement but will keep credit unions posted on any further information we obtain from MasterCard," Richard said.


RSS print
News Now LiveWire
.@CreditYOUnion captures voices of #100MM loud, proud at @GAUnitedCU See #NewsNow Thursday for more
11 hours ago
Ill. @GovernorQuinn signs patent troll law http://t.co/ugWf8zHpCm via @CrainsChicago
12 hours ago
.@MBAMortgage : Mortgage apps increased 2.8% from one week earlier for week ending Aug. 22.
12 hours ago
Franchise businesses may face higher breach risk with POS systems HT @briankrebs http://t.co/LGE46DUk15
13 hours ago
About 1 in 3 consumers use plastsic for in-person purchases of less than $5, according to @CreditCardsCom survey.
15 hours ago