A Michaels credit card lawsuit has been filed in response to the recent news of a security breach at Michaels Stores. This is a warning for consumers who may have shopped at Michaels, as PIN theft of customer's debit cards has made the news.
The new class action lawsuit was filed in the U.S. District Court in Illinois. The lead plaintiff in that suit, Mary Allen of Illinois, claimed that she made about $18.16 in purchases at a local Michaels store on March 15th. Subsequently, her PIN number was likely stolen by thieves, as two unauthorized transactions of $503 showed up in her bank account, reports the Chicago Tribune.
Other Michaels customers have filed reports claiming that their bank accounts also had unauthorized transactions or withdrawals of several hundred dollars, reports the Chicago Tribune.
Allen's class action suit would encompass all U.S. residents who made a purchase at Michaels Stores after January 1, 2011 using a debit or credit card swiped through the PIN pad.
The lawsuit alleges that it was Michaels' lack of security that enabled the PIN thieves to gain access to the credit cards. According to the company, fewer than a hundred credit cards or debit cards were affected, according to the Chicago Tribune.
On May 15th, Michaels did send a notice to customers informing them that their account information may have been comprised, and advising them to seek guidance from their banks on how to safeguard their information. Allen alleges that this was too little too late, and that the stores did not adequately notify all affected customers since she never received this notice, reports the Chicago Tribune.
So what should you do if you shopped at a Michaels store? So far, it seems that only stores in the Chicago area have been hit by the PIN theft. In any case, it is important to closely monitor your bank accounts to ensure that there is no suspicious activity. If there is, notify your bank and the local police.
The Michaels credit card lawsuit is still underway. If the class action proceeds, Michaels' PIN theft may end up being very costly for the company.