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Sunday, July 6, 2008

News : LendingTree sued over data breach

Posted by Elinor Mills 7 comments

One month after suing three lending firms, LendingTree has now been sued by a Bronx man who claims a security breach with the mortgage site has harmed his credit score, led to higher credit card interest rates, and resulted in him getting rejected for at least one loan.

The lawsuit against LendingTree, filed late last week in U.S. District Court in Manhattan, seeks class action status. Filed on behalf of Marvin Garcia, it alleges that LendingTree was negligent in failing to keep customer personal information secure and failing to notify customers of the security breach in a timely manner.

The breaches--which involved names and Social Security numbers among other personal information--are believed to have begun in October 2006, but LendingTree did not notify customers until last month.

LendingTree also is placing the responsibility and cost on customers for monitoring their credit reports and trying to repair negative impacts on their credit history from the breach, the lawsuit says.....

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