VyStar Responds to Agreement with CFPB
Over the past two years, VyStar has worked transparently with the CFPB and the National Credit Union Administration (NCUA).
Read: CFPB Orders VyStar CU to Pay $1.5M for “Botched Rollout” of Online Banking Conversion
VyStar remains committed to prioritizing the best interests, well-being and financial security of its members. VyStar’s intent was always to provide an enhanced banking experience for members by making improvements to its online and mobile banking platforms. When disruptions occurred during the conversion process, VyStar moved swiftly to mitigate any impact on its members and ensure that no member suffered financial harm as a result of the outage. Additionally, VyStar proactively worked in good faith to address regulatory inquiries.
VyStar reimbursed or waived all VyStar fees until services were restored; initiated a process for reimbursement of any third-party fees incurred as a result of the outage; and paused credit reporting during the course of the outage. To be clear, VyStar proactively and voluntarily undertook this response, without regulatory prompt.
During the disruption, members maintained access to their funds and services through VyStar’s extensive network of ATMs and extended hours at both its contact centers and many of its numerous physical branches.
VyStar has continued to make significant changes, including investments and upgrades to further enhance technical infrastructure, information security and digital services to members. These comprehensive improvements were independently identified and implemented and have resulted in exceptional service reliability and robust security protections in the online and mobile banking platforms. Today, the VyStar app has more than 10,000 ratings with an average of 4.8 stars on the Apple App Store and over 14,000 ratings with an average of 4.5 stars on the Google Play Store, indicating high member satisfaction.
VyStar continues to prioritize the financial well-being of its member-owners. “We hope the continuous improvements to our online and mobile banking platforms reassures members that we are dedicated to being a responsive organization and emerging from this experience better and stronger,” said VyStar President/CEO Brian Wolfburg.
America’s Credit Unions Chief Advocacy Officer Carrie Hunt stated, "Credit unions strive to meet their members' needs by offering the highest quality, affordable and competitive products and services. Although sometimes institutions may fall short, causing consumer uncertainty and headaches, credit unions always put their members’ best interest first. The CFPB's enforcement action against VyStar Credit Union stretches its Unfair and Deceptive Acts and Practices authority in a unique way, harshly penalizing the credit union for internal operational actions that ultimately impacted members. We remain committed to pushing back against unchecked CFPB authority."