OCC Sales Eagle to Stop Payday Lending System

OCC Sales Eagle to Stop Payday Lending System

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WASHINGTON any office regarding the Comptroller of this Currency announced today that Eagle National Bank has finalized an order that is consent it to cease all payday financing tasks. Eagle happens to be involved with payday lending through plans with Dollar Financial Group. The OCC acted after discovering that Eagle was at material noncompliance with a youthful Memorandum of Understanding entered into because of the OCC and had been involved in many unsafe and unsound tasks.

The action follows an examination that is recent of in that the OCC determined that:

  • The lender had risked its monetary viability by concentrating in one type of company pay check lending;
  • The lender relinquished direction for the system to an individual originator that is third-party of loans; and
  • The payday financing system had been carried out for an unsafe and unsound foundation, in breach of a variety of criteria of risk-free banking, conformity needs, and OCC guidance.
  • The bank must under the Consent Order

    “Eagle had effortlessly turned within the handling of the lender’s primary company up to a party that is third then practically ignored just just just how that company was being carried out,” stated Comptroller associated with Currency John D. Hawke, Jr. “the lender essentially rented out its nationwide bank charter to a payday lender to be able to facilitate that nonbank entity’s evasion regarding the needs of state law that will otherwise be relevant to it.”

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