The Hudson Heritage Federal Credit Union are suing CUMIS Auto Insurance company for $361 million dollars after declining to pay for a claim.The credit union was taken advantage of due to an auto fraud troubles.
In 2016, three men became apart of the Hudson Heritage Credit Union and got the approval for a car loan. These were auto loans for expensive luxury vehicles such as a Bentley and BMW. Soon after the approval of the large loans, they went into default.
Those at Hudson Heritage Federal Credit Union discovered that the auto loans went into default. This is when they realized the loans have been fraudulent. As for each of the sellers and loan borrowers, they knew each other and had altered the auto title documents. They did this to ensure the approval of the auto loans that they had taken out.
Hudson Heritage Federal Credit Union Car Loans
According to the Hudson Heritage Federal Credit Union, once the car loans went into default, they discovered the car title documents were from three different sellers. They used the same New York address for all of the loans. The Credit Unions field their lawsuit in April 2017 to the United States District Court of New York City. They later saw that the luxury cars were being driven by entirely different people.
Those involved in the loan scheme lived in the credit union’s Poughkeepsie area.They each had driver’s licenses with various addresses in New York, Brooklyn, New York City and Georgia.
The Hudson Heritage credit union said it secured a bond protection arrangement from CUMIS, an auxiliary of CUNA Mutual Group in Madison, Wisconsin.
Furthermore, when the credit union presented its evidence of claim misfortune, it was denied by CUMIS. The credit union, however, did not clarify why the insurance agency dismisses the case, as indicated by court reports.