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OCC Takes Action Against ACE Money Express, Inc. and Goleta Nationwide Bank

OCC Takes Action Against ACE Money Express, Inc. and Goleta Nationwide Bank

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WASHINGTON any office for the Comptroller of this Currency announced today that ACE money Express, Inc., and Goleta nationwide Bank, Goleta, California, signed cease and desist instructions needing them to get rid of unsafe and unsound lending that is payday and to spend $325,000 in civil cash charges. ACE is really a service that is third-party for Goleta within the origination, servicing, and assortment of the payday advances booked because of the financial institution. ACE provides payday advances on behalf of Goleta in 18 states while the District of Columbia.

ACE consented to end lending that is payday undertaken through Goleta by Jan. 1, 2003, also to spend $250,000 in charges. Your order additionally forbids ACE from stepping into any type of written or dental contract to offer any solutions, including payday financing, to your nationwide bank or its subsidiaries with no previous approval associated with OCC. In addition, the cease and desist purchase requires ACE to indemnify Goleta for 100 % associated with expenses, costs, appropriate fees, and damages from alternative party claims.

Those things against ACE had been prompted by a number of facets, including ACE’s failure to shield 641 consumer loan files. The files, which represented pay day loans carried on Goleta’s publications, had been discarded in a trash dumpster in Portsmouth, Virginia in August 2002.