LOS ANGELES (CN) – Thirty-eight credit unions claim Lyndon Property Insurance Co. cheated them of millions of dollars by refusing in bad faith to pay “default protection policies” for subprime auto loans.
Lyndon allegedly used its general agent, Centrix Financial, and affiliates, to sell the policies under a “Portfolio Management Program,” then refused to indemnify. The policies at issue are called “Scheduled Property Floater Inland Marine Policy Lender’s Indemnity Coverage.”
Lead plaintiff Wescom Central Credit Union, and 37 others, demand punitive damages, restitution, and an injunction ordering Lyndon to respect its contracts. They are represented in Superior Court by Michael Davisson with Sedgwick, Detert, Moran.