A Dumpster-diving excursion in Virginia has led to the breakup of a controversial partnership between a nationwide bank and a lender that is payday.
Any office of this Comptroller associated with Currency said Tuesday that Goleta nationwide Bank in Ca had decided to end by Dec. 31 its 2-year-old partnership with Ace Cash Express Inc., an Irving, Tex., payday lender. The contract spared Goleta the risk of disciplinary action; the OCC has made no secret of national banks to its displeasure’ “renting” their charters to payday loan providers. [See OCC News Release Annoucing Agreement]
The pact came into being 8 weeks after having a passerby interested in bins discovered 641 client loan files in a trash container behind an Ace workplace in Portsmouth, Va. Comptroller John D. Hawke Jr. said the discarded files, which represented loans continued Goleta’s books, exemplified the hazards banking institutions face whenever partnering with third-party payday-lenders. (more…)Learn More