FOR IMMEDIATE RELEASE
NEWS RELEASE CONTACT:
Merry Pateuk
PSCU Financial Services, Inc.
800-932-7728
mpateuk@pscufs.com
Robette Brooks
CCS/PR, Inc.
303-699-8861
rbrooks60@earthlink.net
PSCU Financial Services Prevails in AIG Lawsuit
CUSO Recovers in Excess of $2.4 Million For Denied Claim
St. Petersburg, FL, May 23, 2007 – PSCU Financial Services announced it has been
awarded a judgment in excess of $2.4 million from insurer AIG as a result of a lawsuit
initiated by the cooperative in 2003. The lawsuit contested AIG’s failure to pay a claim
based upon identity theft incidents. The foregoing amount represents the original
judgments, attorney fees and costs.
Aware of the threat of losses due to fraud, PSCU Financial Services’ had contracted with
AIG for insurance coverage to protect the cooperative against losses caused by identity
theft. Subsequently, the company was involved with uncovering a fraud ring that took
over approximately 125 accounts, representing more than $1.6 million in losses. PSCU
Financial Services paid the affected member credit unions for the full amounts of their
losses; however AIG declined the claim and refused to compensate the cooperative.
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PSCU Financial Services Prevails in AIG Lawsuit
“We have stated publicly that we will rigorously protect our members from all types of
fraud and that we will use litigation when necessary,” said David J. Serlo, President,
PSCU Financial Services. “In this situation, we assumed responsibility for immediately
covering all the losses for our credit unions and then submitted a claim to our insurance
company. We feel that justice has been served and we are pleased that we have
received full recovery for the losses due to the incident, as well as our attorney fees and
other related costs.”
About PSCU Financial Services
PSCU Financial Services is the nation's largest Credit Union Service Organization
(CUSO) and serves more than 1,100 financial institutions nationwide. As a non-profit
cooperative, the company is owned by more than 500 member credit unions
representing over 11 million cardholder accounts and more than 400,000 online bill
payment subscribers. Its Contact Center handles more than 12 million inquiries a year.
PSCU Financial Services maintains its headquarters and Eastern operations center in
St. Petersburg, Florida. The company is also supported by a West Coast operations
center based in Phoenix, Arizona.
Established in 1977, the company provides a broad array of cost-effective, high quality
financial services that include credit, debit, ATM, prepaid, bill payment and contact
center solutions. PSCU Financial Services uniquely offers its members a full range of
processing options, any combination from full service to in-house pass through
processing for credit, debit and ATM transactions. As the leader in the credit union
industry, the company offers gateway access to national and regional networks. It also
provides full function ATM terminal driving services. For more information, visit the
company's Web site at www.pscufs.com.
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