Lender Compliance Technologies (LCT) launched a new credit union service organization (CUSO) on Wednesday that’s dedicated to making advanced automated-compliance solutions seamless and accessible to credit unions across the U.S.

According to a news release, LCT CUSO germinated as a partnership with One Washington Financial (OWF), a CUSO wholly owned by Washington State Employees Credit Union (WSECU), AKUVO CEO Jay Mossman, and SWBC, a diversified financial services company.

Founded in 2021, LCT is a compliance-driven technology software provider that helps banks, credit unions and auto finance companies manage cancellations and refunds for F&I products, such as GAP and service contracts.

Its flagship platform, Refund Control, provides lenders with end-to-end automation, direct provider connections and real-time tracking that enhances operational efficiency, reduces risk and maximizes recoveries.

The new LCT CUSO will provide credit unions with access to LCT’s cloud-based platform, which processes more than 100,000 cancellations monthly and currently supports nearly 30 credit unions of every size serving more than 5 million members across the U.S.

“We are excited to build upon our successful credit union partnerships to deliver simplified compliance solutions that will help more CUs protect their bottom line and their members,” LCT chief executive officer Glenn Munro said in the news release.

“Through the power of collaboration and innovative technology, the LCT CUSO will give credit unions complete control of the F&I product cancellation and refund process, so they are audit-ready and member-first,” Munro continued.

Paul Kirkbride is chief executive officer at OWF, WSECU’s CUSO holding company

“Credit unions continually seek innovative solutions that help them operate more effectively while enhancing the digital experience for their members,” Kirkbride said in the news release. “By leveraging LCT’s extensive finance and technology expertise, LCT CUSO will empower credit unions to modernize and simplify complex processes and improve recoveries, so more resources go toward their true mission, helping their members.”

Without lender-controlled technology, the companies said member refunds can often be delayed, and credit unions can miss out on recoveries and open themselves up to regulatory risk. Refund Control by LCT CUSO can replace fragmented processes with a single, audit-ready system of record that provides:

—CU-controlled workflows instead of outsourced/BPO models

—Direct connections to more than 800 providers for accurate refund quotes

—Audit-ready system of record with real-time tracking and reporting

—Automation proven to reduce workloads by up to 90%.

“Through AKUVO’s collaboration with LCT, I recognized right away the sheer advantage of LCT and its breakthrough technologies in helping credit unions solve real operational challenges and deliver better members experiences,” said Mossman, who is personally investing in the LCT CUSO through his investment company NRT Holdings. “That’s why I am excited to support LCT’s growth in the CU space and help give more credit unions access to intelligent, automated compliance technology that delivers real results.”

LCT’s Refund Control platform can empower credit unions to serve their members’ best interests while staying compliant in an increasingly regulated environment.

“Financial institutions are committed to supporting their borrowers, especially when they need it most, but the process of collecting external refunds can sometimes create unnecessary complexity behind the scenes,” said Mark Hein, CEO of SWBC’s Financial Institution Group.

“This partnership with LCT’s innovative technology helps simplify that process by reducing the operational burden on financial institutions while making it easier for them to effectively support their borrowers,” Hein went on to say.

Learn more about LCT CUSO and Refund Control for credit unions at lct1.com/for-credit-unions.