Centrix Lawsuits Still Linger

DENVER, Colo. — Lawsuits surrounding the Centrix Portfolio Management Program (which granted subprime auto loans through credit unions) will linger well past the New Year, it seems.

Lyndon Insurance, which initially sued some 81 credit unions, claiming that $130 million it paid out in claims was paid under false pretenses. Lyndon claimed it had no knowledge of mounting losses in the PMG and was unaware of payments made by Centrix to several CUs. One of the CUs being sued is the CU of Texas, who’s CEO; John Lederer told Credit Union Times today that the suit remains active. “Lyndon is trying to settle with as many credit unions as possible, and I think as many as half have already settled, but we’re now in the ‘Motions’ process. This may take forever; I don’t know if we’ll ever settle.” Lederer said that motions for summary judgment and dismissal might be heard early in the year.