JACKSONVILLE, Fla.— The $14-billion VyStar Credit Union is once again making headlines for frustrating members, this time due to a credit reporting issue.
According to First Coast News, a VyStar member contacted the news outlet and reported an alleged error by VyStar caused his credit score to drop by more than 100 points.
As CUToday.info previously reported, VyStar was fined $1.5 million by the CFPB for problems members suffered in the rollout of its new online and mobile banking platforms last year.
The member, Brain Rau, told First Coast News that after contacting numerous credit reporting agencies, he learned that his mortgage, which had been paid off in full in July 2024, was mistakenly reported by VyStar as unpaid every month since then.
"I noticed my score went from about 825 and dropped down to about 713," Rau told First Coast News. "Missed payment, missed payment, missed payments going over the last several months and that just absolutely nuked my credit score.”
First Coast News said that VyStar acknowledged the error and issued the following statement:
"VyStar recently discovered a reporting issue that caused approximately 2,200 of our mortgage holders to be incorrectly reported to the credit bureaus after paying off their loans in full in 2024. We want to assure those members that our team is actively working with the credit bureaus to correct it as quickly as possible. There will be no impact on credit scores once the issue is resolved."
VyStar representatives informed affected members of the issue in an email sent on March 14, First Coast News said.
“However, Rau claims he never received this notification and only learned the full details when he visited his local branch in person and spoke with a manager,” First Coast News added.
In response to questions from First Coast about how the mistake occurred or if it was caused by a technical glitch, VyStar declined to comment on the specifics but reiterated their commitment to resolving the issue as soon as possible, the news outlet said.
VyStar Update
The credit union reported to CUToday.info that the reporting issue has been resolved.
"And the credit bureaus have been notified. Third-party credit monitoring services may take up to 30 days to reflect this information since each has its own schedule for retrieving data from the credit bureaus. We sincerely apologize that this occurred and appreciate our members’ patience while the matter was corrected," the CU stated.