Chattanooga, TN – The City of Chattanooga has notified 836 individuals whose personal information was compromised in a recent data breach involving Nationwide Recovery Services, a third-party debt collection vendor contracted by the city. Official letters sent to affected individuals detail the specific data exposed and outline steps to access complimentary identity protection services funded by the City.
The breach, which was not disclosed by NRS in accordance with their contractual obligations, prompted swift action from city leadership. In response, the Chattanooga City Council voted on Tuesday to rescind the contract renewal with NRS. City officials have begun the process of securing a new provider for debt collection services.
The Kelly Administration has been vocal in its response, emphasizing the importance of accountability. The Office of the City Attorney is currently exploring potential legal action against NRS, citing the company’s failure to notify affected individuals and offer the necessary support in the wake of the breach.
“The City has taken immediate steps to ensure those affected are informed and protected,” a spokesperson said. “We’re also pursuing appropriate action to hold NRS responsible for failing to meet its obligations.”
The breach underscores the growing concerns surrounding data security and the responsibilities of third-party vendors managing sensitive information on behalf of public entities. The City has committed to not only supporting impacted residents through this situation but also improving future safeguards in its vendor relationships.
City officials urge residents who received notification letters to promptly register for the free identity protection services and to remain vigilant for any signs of identity theft or fraud. More information is expected to be released as the legal review continues.