Tampa, FL (September 9, 2025) |
GTE Financial, one of Florida’s largest and most established credit unions, has filed a claim with the American Arbitration Association demanding that Velera Credit Union Services repay nearly $4 million in patron equity owed to GTE. Despite repeated attempts since 2020 to resolve the matter through good-faith negotiations, Velera has consistently refused to engage in meaningful discussions regarding the timely repayment of funds. At Velera’s current rate of repayment, it would take nearly seven centuries—669 years—for GTE to recover its equity in full.
GTE Financial’s partnership with Velera goes back decades. In 1977, GTE was among the founding members of the entity that would eventually become Velera, which began by providing credit card processing to Florida credit unions. Over time, Velera expanded its services to include payment processing, fraud and risk management, digital banking, and customer support services to credit unions nationwide.
“GTE has always valued collaboration within the credit union industry, which makes Velera’s refusal to honor its financial obligation all the more disappointing,” said Marie Campbell, Vice President and General Counsel of GTE Financial. “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. We are simply asking Velera to do what is right and return what is owed.”
Velera, formed by the merger of PSCU and Co-op Solutions, is one of the largest credit union service organizations in the country. In Fiscal Year 2024, Velera reported record revenue of $1.4 billion and assets totaling $2.7 billion, further underscoring its ability to make timely repayment.
“This situation reflects a broader issue of trust within industry partnerships, and it is vital that we restore accountability and good faith dealings,” added Brian Best, President and Chief Executive Officer of GTE Financial. “Credit unions and CUSOs alike must remain committed to their foundational values rather than allowing disputes to undermine the cooperative framework.”
GTE Financial remained a patron member of Velera for more than four decades before disassociating in July 2019, when GTE began managing its payment processing in-house. At that time, Velera owed GTE $4,799,805 in patron equity. While Velera has made token annual payments since then, its pace of repayment deprives GTE of millions in potential opportunity earnings, particularly given that no interest is accruing on the outstanding balance.
“This is about fairness, integrity and accountability,” Campbell added. “Our responsibility is to protect the financial interests of our members, and that means ensuring that Velera fulfills its obligation. We will pursue every avenue necessary to recover the funds that rightfully belong to our credit union and its members.”