Cencap Federal Credit Union has filed a lawsuit against Fiserv, one of the nation’s largest providers of core processing and digital banking services, alleging significant deficiencies in the company’s data security practices.
The complaint, filed today in federal court, asserts that Fiserv’s Virtual Branch online banking platform provided to financial institutions and the Client360 portal used by financial institutions to open support tickets with Fiserv lack basic security controls that make them vulnerable to hackers.
The credit union is also challenging Fiserv’s multi-million-dollar early termination fee, alleging it functions as an unlawful penalty designed to punish institutions that seek to leave when problems arise. (Page 43-35 of the complaint.)
Charles Nerko, who leads the Data Security Litigation team at Barclay Damon LLP, represents Cencap Federal Credit Union in the case. He has previously represented four other credit unions in litigation against Fiserv, bringing a strong track record of advocating for credit unions in high-stakes disputes with one of the industry’s most dominant core providers.
“Given NCUA’s lack of authority over third-party vendors, credit unions themselves play a vital role in maintaining public trust, reducing third-party risks, and holding vendors to appropriate standards. We hope this case contributes to broader conversations across the credit union movement about vendor oversight, accountability, and fair contracts.”
- Charles Nerko, attorney for Cencap Federal Credit Union and Team Leader for Data Security Litigation at Barclay Damon LLP
