Should Your Small Business Sue Over The Equifax Breach?

Law Blog

Recently, a number of people and small businesses had their information compromised by a data breach at one of the country's three largest credit monitoring agencies. The agency in questions, Equifax offered individuals a free copy of their credit report as well as free credit monitored. However, it didn't extend the same offer to businesses. As a result, many businesses are suing.

Should you contact a small business attorney and potentially join a lawsuit against this company? Here's what you need to consider.

1. Small Business Credit Is Important

Creditworthiness is just as important for small businesses as it is for individuals. When your business applies for a loan or a business credit card, the lenders look at the credit report associated with your business. In many cases, especially for sole proprietorships, lenders also look at the credit report of the business's owner.

If your small business credit gets compromised, it could be financially damaging to your business if you can't get the loans you need. However, this doesn't necessarily mean that you need to bring a lawsuit against the company.

2. Damages Need to Occur

In order to bring a lawsuit against another entity, there needs to be damages. The exact damages vary based on the case. For instance, in some cases, the damages are physical injuries, and in other cases, the damages are financial.

If your credit has been breached and you've spent money trying to mitigate the situation, those are damages, and you may want to pursue compensation. Similarly, if you've had to pay for a credit report or monitoring, those are also damages and you may want to bring that up in court.

Without damages, you don't have a case. A small business attorney may be able to help you identify damages if you aren't sure.

3. Wasted Time Can Constitute Damages

If you've spent a lot of time trying to deal with the Equifax breach, that could be considered damages. Remember, time is money, and when it comes to business, this statement is particularly true.

The time you spent monitoring your credit report could have been spent marketing, selling, or working on other aspects of your business. Similarly, the time you spent putting credit freezes on your account can also constitute damages.

To make a definitive decision about this case or others, consult with a small business attorney. They can help you figure out the right direction in your situation.



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