VyStar Credit Union's Thomasville, Ga., branch. (Credit/VyStar CU)
VyStar Credit Union's online and mobile platform was doomed to fail even before it was rolled out, causing members to lose access to their accounts and funds for weeks and triggering a government investigation that chronicled the details leading up to the immediate failure of the virtual banking platform in 2022.
Without admitting or denying any of the consent order's findings or conclusions of law, VyStar agreed to a 47-page document that explains what caused the debacle in May 2022. The consent order is based on a joint investigation by the CFPB and NCUA that determined VyStar violated provisions of the Consumer Financial Protection Act. As a result, the credit union will be required to pay a $1.5 million fine, compensate affected members, and take steps to prevent future disruptions and maintain rigorous oversight of its technology and risk management practices.
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