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The Tampa, Fla.-based GTE Financial, one of Florida’s largest credit unions, has filed an arbitration claim against Velera Credit Union Services, demanding repayment of nearly $4 million in patron equity. The case, filed with the American Arbitration Association, marked the latest escalation in a long-running dispute that dates back to 2019.
According to GTE, Velera owes $4.8 million in equity from GTE’s decades-long patronage, but has only made “token” annual payments since GTE disassociated six years ago. At Velera’s current pace, GTE said, it would take 669 years to recover the full balance.
“GTE has always valued collaboration within the credit union industry, which makes Velera’s refusal to honor its financial obligation all the more disappointing,” Marie Campbell, GTE’s vice president and general counsel, said. “Our members’ equity is not optional, and the deliberate delay in repayment is an affront to the cooperative values on which credit unions are built.”
Velera, formed through the 2023 merger of PSCU and Co-op Solutions, is the largest payments CUSO in the country. In 2024, it reported $1.4 billion in revenue and $2.7 billion in assets, which GTE said underscores Velera’s ability to pay.
“This situation reflects a broader issue of trust within industry partnerships,” GTE CEO Brian Best said.
Campbell added, “We will pursue every avenue necessary to recover the funds that rightfully belong to our credit union and its members.”
The arbitration process will determine whether Velera must accelerate repayment.
According to NCUA data, GTE has $2.9 billion in assets and serves more than 230,000 members.
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