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News Now

CU System
Suit vs. CU seeks class action in Centrix repossessions
ST. LOUIS and ARLINGTON HEIGHTS, Ill. (5/2/08)--A credit union that used subprime auto broker Centrix Financial as its agent is the target of a lawsuit seeking a class action status related to auto repossessions. The lawsuit, filed in Jackson County (Mo.) Circuit Court last week, against Arlington Heights, Ill.-based Meadows CU, names Minnie Pearl Landrum of Grandview, Mo., as the class representative, said a St. Louis-based business and legal publication (Daily Record April 28). Centrix Financial is not a party in the lawsuit because it is in a Chapter 11 bankruptcy reorganization in Colorado. The case includes Missourians who within the past six years purchased an auto with a loan from the credit union and saw the auto repossessed. Edward Buettner, CEO of the $108.6 million asset credit union, told News Now the credit union had not received anything about the lawsuit. "I have not heard about it, so I really couldn't comment about it." The suit alleges the credit union, through its agent, used faulty notices it repossessed vehicles from borrowers who fell behind in payments. Repossession notices sent by the credit union via Centrix were incomplete or misled borrowers about their rights under Missouri law, said the petition. Notices of repossession had no contact information for borrowers to inquire about the debt and did not include the amount owed. The lawsuit is asking the court to rule that the credit union cannot sue the borrowers to collect on deficient balances and is seeking monetary and punitive damages.


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