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
Of $1.3B in payments through mobile devices, 90% occurred at @Starbucks stores http://t.co/MN49JR1NXK
13 hours ago
.@LoveBethpage 1st to launch mobile debit/credit card control from @COOPFS http://t.co/kuq7onGuai
14 hours ago
A booming W Okla county gets its first #creditunion @TheHEFCU See #NewsNow http://t.co/svTyMnms0X
16 hours ago
Mortgage interest rates continue slide in September @FHFA http://t.co/agU9RJW5Kq
18 hours ago
Reimagined branches shift to member, not #creditunion, needs: @cunacouncils white paper http://t.co/lN2mu0IVar
19 hours ago