Mark Moody, one of the managers of North Star Business Services LLC, told Credit Union Times the fraudulent payment collection claims the NCUA has brought against the defunct CUSO are false.
Moody said he received the NCUA complaint last night and was surprised to hear of the allegations. The Nov. 8 suit said NSBS continued to collect payments on 18 commercial loans allegedly owned by Ensign Federal Credit Union, which did business with the CUSO and was liquidated in November 2009 by the regulator.
Moody said the day after Ensign shut down, the NCUA contacted NSBS and told the firm to continue to service and collect payments on the loans in question. In February, he said he received another letter from the NCUA saying the CUSO's services were no longer needed. Moody said he then contacted an attorney and in March sent a letter to the NCUA seeking a payment of $115,500 from the agency for management and administrative fees.
"There are funds that are being held," Moody said of the nearly $46,000 the NCUA is seeking. He said the funds will continue to be held until he receives the $115,500 payment from the regulator.
"I received a letter from [the NCUA's] attorney in April, which I complied with. I provided all loan files and all payments were to be sent to the NCUA," Moody said.
To NCUA's claims that NSBS threatened to charge service fees if borrowers of the loans did not continue to make payments after Ensign closed, Moody said that is false.
"It wasn't like we were strong arming," he said. "We sent a letter to our clients to continue making payments. All of this got resolved at the end of April, the first of May."
In addition to Ensign, NSBS worked with three other credit unions. The CUSO has since dissolved and Moody is doing consultative work.