Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
33 CUs sue over unpaid Centrix claims
NEW YORK (10/20/08)--According to media reports, 33 credit unions have sued Lyndon Property Insurance regarding claims that were not paid on defaulted subprime auto loans. Lyndon Property is a unit of Protective Life Corp. (Bloomberg News Oct. 16). It also is the insurer for Centrix Financial, a subprime auto lending service that serviced credit unions (News Now Feb. 13). Credit unions suing Lyndon are from Texas, California and Illinois, and seek to recover losses covered under default protection policies Lyndon refused to pay. The suit was filed Oct. 10 in Los Angeles County Superior Court, Bloomberg said. Centennial, Colo.-based Centrix was placed under involuntary Chapter 11 protection on Sept. 15, 2006, by creditors IFC Credit Corp., Suntrust Leasing and Wells Fargo Equipment Finance Inc. They said Centrix owed them a combined $4.6 million in lease payments. Several days later Centrix and its affiliates filed voluntary petitions for Chapter 11 protection (News Now April 25). Credit unions and other entities have claimed millions against the company's assets. More than two-thirds of Centrix's portfolio is owned by roughly 230 credit unions nationwide. It underwrote more than 250,000 loans totaling $4 billion (News Now Sept. 6, 2002).


RSS





print
News Now LiveWire
About 1 in 5 #CUs offer credit-building loans,@SchenkMike @CUNA vice president of economics and statistics, told @CreditCardsCom
9 hours ago
RT @CUNA: DDoS attacks shorter, intense, more expensive: @VERISIGN HT @newsnowlivewire http://t.co/QiQKIEjK5v
9 hours ago
RT @CUNA: .@CUNACouncils launches new website. Offering site tours to current members. Check it out! http://t.co/YFJA1tKIxn
9 hours ago
.@Discover to support #ApplePay by fall http://t.co/3wDjkOVU7P HT @Forbes
11 hours ago
.@HUDgov requires investors to delay foreclosure for a year and offers a non-profit only pool sale http://t.co/WYzQrTL3QA
14 hours ago