Bessemer System Federal Credit Union, a financial organization in Pennsylvania, is suing financial technology company Fiserv Solutions over what it calls rampant billing errors, significant bugs and “baffling” security lapses, according to reports.
The lawsuit was filed on April 26, and the credit union said that its web platform, which is maintained by Fiserv, is “plagued with security vulnerabilities that affect the privacy of thousands of Bessemer’s members.”
Fiserv is a huge global company that provides critical software for upwards of 12,000 clients in 80 countries. In its lawsuit, the credit union calls Fiserv products the “lifeblood” of its company. The credit union also says it will no longer use Fiserv.
“To protect the credit union’s members, the credit union is replacing its core processing vendor and will be taking appropriate legal action against the vendor,” Charles Nerko, a lawyer representing Bessemer System FCU told Cyberscoop.
The credit union says it’s owed relief from damages that include negligence, breach of contract and unfair trade practices. The complaint also claims that when the FCU went to Fiserv for help, it threatened “civil and criminal prosecution if Bessemer discussed Fiserv’s security problems with third parties.”
In response to a request for comment, a spokesperson for Fiserv said: “We believe the allegations have no merit and will respond to the claims as part of the legal process.”
Other allegations against the company include frequent billing problems and fraudulent charges for cancelled or unrequested services. There are also allegations of bugs that harm customer data in ways including misrepresentation of loan payments, cancelling accounts or not reporting when a loan has been paid off.
Other bugs affected the bank’s operations, like when the system that’s responsible for federally-mandated FinCEN audits goes down, when the system would put the wrong address on customer mailings or when system problems would prevent workers from logging out or printing checks.
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