Monday, March 20, 2017

Jury Orders 4Front CU to Pay over $1 Million

A jury directed 4Front Credit Union (Traverse, MI) to pay $1,132,124 in damages to John M Floyd & Associates Inc.

John M Floyd & Associates provided overdraft and courtesy pay services for Members First Credit Union.

Members First Credit Union merged with Bay Winds Credit Union to create 4Front in 2015.

Floyd & Associates argued the contract between Members First CU and Floyd & Associates would be extended through 2017 if the credit union shared the company’s services with another entity, according to records filed in 13th Circuit Court.

Jurors determined that 4Front violated the terms of the contract and ordered the credit union to repay John M Floyd & Associates.

Read the story.


  1. John M. Floyd & Associates SMASHED 4Front CU with a JUDGMENT of $1,132,124. Not even the CUNA Bond will cover the damage award. That has got to sting. Hope when 4Front CU writes the check to John M. Floyd - pray they have overdraft & courtesy pay protection in case funds are lacking to cover the item. Sure as hell must have been a lot of juice in the Floyd Courtesy Pay contract to hit the million $ plus award. How many $25 courtesy pay items must 4Front CU collect to hit break even on this score? How about 45,285...o.k. so maybe they can make it up in volume.

  2. I wonder if JMFA will ever get credit union business again after that judgment.

    1. Really?
      I wonder if anyone should be doing business with credit unions without a contract.

  3. Of course they will - follow the contract terms and these things wont happen.

  4. Looks like another sharp business practice from a group of folks that prey on customers with low balance checking accounts. While these people are living short of paycheck to paycheck Floyd and his wise guys have figured out a way to pimp 'em and of all things title it Courtesy Pay. Really? What is the courtesy? You pay the damn item and clip 'em $25. That kind of courtesy deserves a kiss. 4Front got skinned on this trade. Call 'em 4Skin'd!



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