A community bank has joined two credit unions in a lawsuit against Equifax following the credit bureau’s massive data breach. Bank of Louisiana in New Orleans, along with Aventa Credit Union in Colorado Springs and First Choice Federal Credit Union in New Castle, Pa., are seeking class-action status on the suit.
The lawsuit argues that the Equifax breach, which compromised the financial information of up to 143 million American, will impose considerable costs associated with monitoring, preventing, and responding to fraudulent charges and account openings. It also notes that financial institutions may face increased regulatory compliance costs and diminished lending due to the incident.
The suit follows the retirement of former Equifax CEO Richard Smith, who remains scheduled to testify before the Senate Banking Committee next week. ICBA offers tips for community bankers on how to respond to the Equifax breach as well as a customizable letter that community banks can use to inform their customers about the breach.
Access Resources on Equifax Breach >