Demand Letters, Lawsuits Center on Wiretap Violations at Credit Unions

In 2022, a nationwide rise in litigation activity centered on wiretapping violation claims was reported involving companies' use of “session replay” technology.

This trend continues to grow as plaintiff attorneys have initiated a string of demand letters and lawsuits against credit unions alleging that customer-facing live chat tools violate state wiretap acts, such as California’s Invasion of Privacy Act, by secretly recording communications, intercepting, and eavesdropping said communications in real-time. 

The law firm at the forefront is the same firm that alleged credit union websites violated the Americans with Disabilities Act.

It is important for credit unions to work with legal counsel to ensure that their website policies and technologies comply with the privacy laws and wiretap laws of each state where its website is accessed.

Read the CUNA Mutual Group Risk Alert