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Small Businesses Follow Consumers with Equifax Lawsuits

  • Small Businesses Follow Consumers with Equifax Lawsuits

    Small Businesses Follow Consumers with Equifax Lawsuits

    Not only are individuals and consumers suing Equifax over its recent data breach, now small businesses are entering their own lawsuits as well. Summit Credit Union, a small credit union in Madison, Wisconsin, has brought a class action lawsuit on behalf of all credit unions that have had to recently reimburse customers for fraudulent charges brought on by the Equifax breach, which has impacted approximately 143 million people so far.
    As well, another class action was filed by three different businesses, including a real estate company, a consulting firm, and a video production company. The businesses claim that the Equifax breach has negatively impacted their ability to obtain loans or lines of credit, and is the first time that small businesses have filed a suit over a data breach. The data breach can be especially harmful to small businesses, classified as less than 500 employees, because many business owners have credit for their businesses tied to their own personal financial information. Small businesses also heavily rely on personal and business loans, as they generally lack access to public institutional debt. Failure to obtain lines of credit can negatively impact the long-term health of a business, including consistent payroll.
    Small businesses are further hindered by the data breach because, while individuals are entitled to an annual credit report, businesses have traditionally had to pay $99 dollars to check on their credit. While larger companies are able to shoulder that cost, small businesses may find it difficult, especially if uncertainty around credit security may warrant checking multiple times. Lawsuits filed against Equifax hope to highlight this issue and potentially eliminate the cost, as well as change the law surrounding small businesses and lines of credit.

    If you have legal questions or wish to gain more information about a specific issue, get in contact with the lawyers at the Lamchick Law Group, P.A., serving Florida with offices in Miami-Dade County.