Nara Settles With Justice Dept. Over Auto Loans

LOS ANGELES (AP) — Nara Bancorp Inc. on Friday said it agreed to settle Justice Department allegations involving auto financing contracts.

The bank denied any wrongdoing, but said "it was in the best interest of the bank to put this matter behind us," according to Chief Risk Officer John Hampton.

The allegations center around the Justice Department's claim that third-party auto dealers charged excessive interest rates for loans to customers. The dealers then sold these loans to banks, including Nara.

The company said it had no say in negotiating the interest rates, but chose to settle to avoid a protracted legal fight. Nara did not specify the cost of the settlement.

Shares of Nara closed Thursday at $6.53.