On Wednesday, according to court documents filed in Minnesota, Target proposed a $10 million settlement to the class-action lawsuit that followed a massive data breach to the retailer in 2013. Victims will be eligible for up to $10,000 in compensation. Under the proposal, Target will deposit the settlement amount into an interest bearing escrow account to pay individual victims.
The claims will be processed primarily online through a dedicated website. To be eligible, victims must be able to state they’ve experienced at least one of the following:
- Unauthorized, unreimbursed charges on their credit or debit card
- Amount of time spent addressing those charges
- Fees related to hiring someone to correct their credit report
- Higher interest rates or fees charged on those accounts
- Any credit-related costs
- Costs associated to replace their Social Security number, identification or phone number
Target settlement
The claim form also asks for documentation to support reimbursement claims. Under the proposed settlement, Target is also required to adopt certain security practices. The proposed settlement is awaiting approval by a federal judge.
In December 2013, when the data breach was revealed, thieves compromised as many as 40 million credit cards, resulting in as many as 110 million victims having their personal information such as email addresses and phone numbers stolen.
Stay tuned to Business Consumer Alliance as we follow the status of this settlement. We’ll provide you with information on how to file a claim once the details are available. In the meantime, be sure to sign up for our Consumer Ally program, which is a free service that includes our e-Newsletters, scam alerts and news that impact consumers and the marketplace. Follow us on our social media channels (Facebook, Twitter, Google and LinkedIn) to stay informed.
About Business Consumer Alliance:
Business Consumer Alliance (BCA) is a non-profit company which started in 1936. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.
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