Credit unions sue Heartland Payment Systems

A number of action lawsuits were launched against Heartland Payment Systems, one of the U.S. largest credit card processors. Palm Beach County Credit Union is one of several that have submitted a filing. The credit union seeks actual and punitive damages for allegations of negligence and breach of duty. Credit unions in Pensacola, Alabama and Louisiana also are plaintiffs in the suit against New Jersey-based Heartland Payment Systems.

According to the statement in the lawsuit filed in U.S. District Court for the Southern District of Florida Heartland was allegedly slow to notify its clients which in turn resulted in additional damages to the financial institutions. Palm Beach County Credit Union alleges that it suffered damages because it had to reissue credit and debit cards.

“Our clients have gone to great expense in correcting this situation … there is also the unknown damage to their reputation,” said attorney Greg Weiss of Leopold Kuvin, which filed the suit.