PSCU Financial Services Prevails in AIG LawsuitCUSO Recovers in Excess of $2.4 Million For Denied ClaimSt. 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. “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 ServicesAs a non-profit cooperative, PSCU Financial Services supports 1,100 financial institutions and is owned by 500+ member credit unions representing over 11 million cardholder accounts. Its Contact Centers 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 and additional call center operation in Detroit, Michigan. 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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