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FKNC plans layoff

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Processing center will close division

By John Friedlein

By JOHN FRIEDLEIN

jfriedlein@thenewsenterprise.com

ELIZABETHTOWN — A local payment processing center is scaling back operations after not recovering from the loss of an unnamed client last fall.

Fort Knox National Co. plans to lay off a “fair number” of its 100 employees at its Ring Road call center, spokesman Paul Flanigan said. He did not provide a specific total, saying he was not sure if all of the details have been worked out.

FKNC is closing a division called TruePay — a service offered to billers, such as auto lenders, who send a lot of invoices. Employees process customers’ electronic payments and answer calls from people who want to pay bills by phone.

Around Aug. 15, the company  plans to close the contact center, which has been open six years.

FKNC will continue local operations with its Military Assistance Corp., which processes payments on behalf of military personnel. That side of the business is “going very well,” he said.

About 30 employees work at the Louisville headquarters, which relocated two years ago from Elizabethtown.

As for the layoffs, the main contributing factor is the loss of a major client in October, when some employees also were let go.

“As the year has worn on, it’s become clear it’s just not a viable business for us,” Flanigan said.

The sluggish economy is not to blame, he said. Instead, an “influx of new competitive forces” is a factor in the scaleback.

John Friedlein can be reached at (270) 505-1746.