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Credit Union’s Botched Rollout of Online Platform Draws CFPB’s Interest

  • The CFPB has reached a settlement with VyStar Credit Union to resolve allegations that its defective new online banking platform violated the Consumer Financial Protection Act of 2010.
  • According to the consent order, VyStar’s new online banking platform allegedly crashed soon after launch and, when brought back online, lacked key banking services for weeks or months, causing consumers to lose access to accounts and funds and to incur late fees when online bill payments failed.
  • Under the terms of the consent order, VyStar must pay $1.5 million in civil penalties, and provide consumer redress for financial harm caused by the platform outage, among other relief.