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Maui loan company gets cease-and-desist order from state


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POSTED: Saturday, November 14, 2009

Maui Industrial Loan & Finance Co. Inc. has been hit with a cease-and-desist order by the state Commissioner of Financial Institutions.

Maui Industrial is a Wailuku-based nondepository financial services loan company licensed to make loans. It is not authorized to accept deposits or borrow money from customers.

“;There is some indication that we've had that they're taking funds of some sort from outside the company that could be characterized as investments or advances from consumers,”; said Nick Griffin, state Commissioner of Financial Institutions.

Maui Industrial did not return Star-Bulletin calls.

According to the company's most recent statement of condition, filed with the state, it had assets of $2,910,042, liabilities of $2,382,315 and capital of $527,727, all as of June 30. Its assets are primarily loans, Griffin said.

Nondepository loan companies do not undergo the same intense scrutiny as banks and other, similar financial institutions, because of the different nature of the businesses, Griffin explained.

The state's oversight mainly involves compliance with respect to the loans they make, as in whether consumers are being charged fees and interest rates in accordance with regulations.

Maui Industrial's books have shown no evidence the company is taking deposits, but “;we've gotten some indications from outside the company's books that something is kind of going on,”; Griffin said.

His office felt the need to issue the cease-and-desist and get the word out to any customers who might have questions relating to Maui Industrial. His office can be reached at 586-2820.

Consumers need not be fearful, he said. “;If you have a loan with the company, you're in pretty good shape; you're in the driver's seat.”;