CreditFresh Hit with Class Action Following 2022 Data Breach

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A proposed class action claims that CreditFresh has failed to adequately protect consumers’ personal information from unauthorized access.

The 22-page lawsuit alleges defendant Propel Holdings, Inc., who offers consumers lines of credit under the CreditFresh name through CBW Bank, First Electronic Bank and other partners, disregarded users’ privacy rights by failing to take reasonable steps to safeguard their information, which was reportedly compromised in a data breach in February or March 2022.

According to the suit, the information exposed during the breach included customers’ and prospective customers’ names, dates of birth, addresses, phone numbers, bank account information, Social Security numbers and email addresses.

The lawsuit says that those affected by the incident now face a “lifetime risk” of identity theft and fraud due to the defendant’s apparent negligence with regard to the safekeeping of their personal information.

The case relays that sometime in February or March 2022, an “intruder” gained access to CreditFresh’s web interface. CreditFresh subsequently sent affected customers around March 15 an email in which it admitted that their personally identifiable information had been stolen, the suit says.

According to the case, CreditFresh could have prevented the breach by taking reasonable steps to safeguard the information with which it had been entrusted, including by encrypting the data, deleting information it no longer needed, limiting unjustified accessibility to customers’ personal information or otherwise reviewing and improving its network security.

The suit says the defendant’s failure to protect consumers’ information is “exacerbated by repeated warnings and alerts” regarding the threat of data breaches, particularly in the financial sector.

Per the lawsuit, the consequences of the CreditFresh data breach are sure to be “long lasting and severe” given the fraudulent use of consumers’ information may continue for years.

“Plaintiff and Class members now face years of constant surveillance of their financial and personal records, monitoring, and loss of rights,” the complaint reads. “Plaintiff and Class members are incurring and will continue to incur such damages in addition to any fraudulent use of their [personally identifiable information].”

The lawsuit looks to represent anyone whose personally identifiable information was accessed or exfiltrated during the 2022 CreditFresh data breach.

Though initially filed in Broward County, Florida Circuit Court on March 17, the lawsuit was removed to the state’s Southern District Court on May 6, 2022.

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