SOURCE: MedChoice Financial

MedChoice Financial

October 05, 2011 13:52 ET

MedChoice Financial Sues ADS Alliance Data Systems and World Financial Network Bank for Breach of Contract, Wrongful Termination of Credit Card Program Agreement and Other Wrongful Conduct

DEERFIELD BEACH, FL--(Marketwire - Oct 5, 2011) - MedChoice Financial, LLC, a leading national medical financial company, recently filed an amended complaint against ADS Alliance Data Systems, Inc. and World Financial Network Bank for breach of contract, wrongful termination, and other improper conduct in connection with the credit card program agreement between MedChoice and the Bank. As alleged in the amended complaint, the Bank's wrongful termination and other misconduct by the Bank and its parent company ADS resulted in the destruction of MedChoice's business and in ADS entering into a direct relationship with MedChoice's largest customer, American Laser Centers.

MedChoice and the Bank entered into a credit card agreement in 2005 for the Bank to underwrite private label credit cards that MedChoice issued to patients of various healthcare providers that comprise MedChoice's exclusive provider network. In 2009 and into 2010, MedChoice generated more than $10 million per month in revenues through this successful program. After ADS considered buying MedChoice, ADS and the Bank unilaterally decided to change the terms of the parties' business relationship which restricted and subsequently cut off MedChoice's cash flow, resulting in termination of the contract for pretextual reasons of ADS's and the Bank's own creation. MedChoice also claims that the Bank failed to pay profit sharing amounts owed under that contract, and that ADS and the Bank misappropriated MedChoice's intellectual property after termination.

In addition, MedChoice asserts claims against ADS and the Bank for improperly issuing checks to account holders using MedChoice's name without authorization, which bore the signature of an ADS executive.

MedChoice filed its original complaint in federal court in Columbus, Ohio against the Bank in March 2011, and after an unsuccessful attempt to negotiate a resolution, MedChoice filed its amended complaint adding ADS as a defendant in September.

About MedChoice Financial

MedChoice Financial, headquartered in Deerfield Beach, FL, is a national medical financial institution that services the medical community (medical, dental, cosmetic, chiropractic) and its patients with flexible, convenient financing solutions. Dedicated foremost to superior customer service, MedChoice Financial has become the largest and fastest growing elective medical financing companies in the nation. For more information, visit www.medchoicefinancial.com

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