WASHINGTON– The Consumer Financial Protection Bureau (CFPB) has terminated its consent order against VyStar Credit Union, after the credit union was found to have fulfilled of obligations from a 2024 enforcement action that found the Jacksonville, Fla.-based CU had violated the Consumer Financial Protection Act when a tech conversion went bad.
The conditions of the order included a $1.5 million penalty and member refunds.
The original order, issued in October 2024, stemmed from issues with VyStar’s digital banking system conversion in May 2022, which resulted in numerous service disruptions for members, drawing significant media coverage and lines at its branches.
The issues were serious enough that VyStar cancelled its planned acquisition of a Georgia bank as it dealt with the fallout from the conversion glitches.
The CFPB found that VyStar’s system rollout failed to meet legal requirements, causing members to experience issues accessing account balances, transferring funds, and making payments.
Key Terms
In addition to the penalty, key terms of the order included:
- VyStar had to establish a governance committee to oversee consumer-facing banking projects.
- VyStar was required to ensure all members owed redress were compensated.
