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ARTICLE · 06 NOVEMBER 2024

CFPB Penalizes Major Credit Union For Mishandled Online Banking Program Rollout

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On October 31, the CFPB entered into a consent order with a Florida-chartered credit union for harming consumers in connection with the botched launch of a new online banking system...

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On October 31, the CFPB entered into a consent order with a Florida-chartered credit union for harming consumers in connection with the botched launch of a new online banking system, in violation of the Consumer Financial Protection Act (CFPA).

In May 2022, the credit union, which is one of the largest in the country, attempted to launch a new online platform. According to the Bureau, shortly after it launched, the platform became unstable, intermittently losing functionality. The credit union re-launched a limited version that did not provide members access to their account statement or history, the ability to make internal transfers between accounts, or credit card and loan payment functions, including recurring payments. Customers that sought help by calling customer support or visiting a local branch faced long wait times or limited service. As a result, customers incurred NSF and overdraft fees, late fees, and other related charges.

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