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.


Posted by at
Labels: ,

5 comments:

  1. AnonymousMarch 20, 2017 at 7:39 PM

    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.

    ReplyDelete
  2. A. NonymousMarch 21, 2017 at 12:19 PM

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

    ReplyDelete
    Replies
    1. AnonymousMarch 22, 2017 at 2:13 PM

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

      Delete
  3. AnonymousMarch 22, 2017 at 5:34 PM

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

    ReplyDelete
  4. AnonymousMarch 22, 2017 at 7:08 PM

    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!

    ReplyDelete

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.