Navy Federal Credit Union, the nation's largest credit union with over 13 million members, is facing a new class action lawsuit alleging it allows artificial intelligence (AI) bots to monitor and record customer service calls without their consent.
Avner Paulino, a Navy Federal member, filed the lawsuit on May 31, 2024, in a California federal court. The lawsuit names both Navy Federal and Verint, the AI company providing the call monitoring technology, as defendants.
Paulino alleges that he made multiple calls to Navy Federal's customer service line, disclosing sensitive personal and financial information during these conversations. He contends that Navy Federal deceived him by failing to disclose that their calls were being intercepted and analyzed by Verint's "Real-Time Agent Assist" software.
Paulino alleges the credit union allows artificial intelligence (AI) bots to monitor and record customer service calls without their consent. The lawsuit details the inner workings of Verint's "Real-Time Agent Assist" software:
According to the complaint, this practice violates California privacy laws by failing to obtain explicit consent from customers before monitoring their calls. It further raises concerns about how Verint might be using the collected data:
This lawsuit isn't the first time Navy Federal has faced legal action in 2024. Earlier this year, the credit union agreed to pay $5.5 million to resolve a separate class action lawsuit concerning deceptive International Service Assessment (ISA) fees.
That lawsuit alleged Navy Federal charged customers a 1% ISA fee for debit card purchases made online from overseas merchants, even when the customer was physically located in the U.S. at the time of the transaction.
Paulino seeks to represent all California residents whose calls to Navy Federal were monitored by Verint's technology without their consent. The lawsuit seeks certification as a class action, financial compensation for damages, legal fees, and a jury trial. Additionally, it seeks to compel Navy Federal to implement stricter data privacy practices and obtain explicit consent from customers before monitoring their calls.
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