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FSB Financial Cuts Loan Rates for Customers of Bankrupt Dealership

September 19, 2005

DES MOINES –- Iowa Attorney General Tom Miller announced that FSB Financial has agreed to lower loan rates for about 1,100 customers of the now defunct Dan Nelson dealerships.

The Dan Nelson Automotive Group was sued in January for allegedly defrauding customers and targeting people with poor credit histories at its Sioux City, Council Bluffs and Des Moines locations, the Quad-City Times reported.

FSB customers will have their loan rates cut to 17.95 percent. Many of those who financed through the South Dakota Acceptance Corporation - the auto group’s finance company - were paying rates of 24.95 percent on their loans.

Customers will also have their loan amount cut by $500. In addition, the agreement states that loans once considered due will now be deemed current, according to the report.

Last month, MetaBank came to similar terms with the attorney general’s office, changing loan terms for about 1,400 customers.

Miller’s office is seeking the same lowered terms for the Dan Nelson customers who continue to pay the inflated rates.

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