Rejected Autoland Bidder Cries Foul
Nearly three months after the NCUA was appointed the liquidating agent for Telesis Community Credit Union, the agency has been working behind the scenes to divest the cooperative’s roughly $4 million stake in Autoland Inc., an auto buying CUSO.
Since June 1, the date that Telesis of Chatsworth, Calif., was liquidated and its assets purchased by the $1.3 billion Premier America Credit Union, also in Chatsworth, a number of entities initially expressed interest in Autoland, said John Fairbanks, NCUA public affairs specialist.
Despite a series of emails, faxes, letters and phone calls, neither Reichman or Loebner were able to get any additional information on why the credit union colleague was not given a bidding package and why the AMAC would not consider other bidders besides credit unions or CUSOs.
“As Telesis’ experience shows, credit unions and CUSOs may not be in the best position to operate an auto brokerage service and thus, may not fairly value the operation,” Reichman wrote in a July 13 letter to NCUA General Counsel Michael McKenna, provided to Credit Union Times by Loebner.