First Bank of Delaware closed and voluntarily liquidated its assets in November 2012, according to the Federal Deposit Insurance Corporation, and it no longer issues credit cards or other financial products. Bryn Mawr Trust purchased deposit accounts and loans from First Bank, but it did not aquire its credit card accounts, as FBD Liquidating Trust explains, which is the entity responsible for disposing of the former bank's assets.Continue Reading
Prior to its closure, First Bank of Delaware was a Wilmington-based subprime lender, explains The Guide Web. It offered four popular credit card products: the Continental Finance Credit Card, the Simply Gold MasterCard, the Imagine Gold MasterCard and the Tribute MasterCard. The bank issued cards with $300 credit limits, but its high initial fees left some cardholders with as little as $35 in available credit. The bank also charged high interest rates on unpaid balances.
The institution's closure came shortly after federal regulators cited the bank for illegal activities and its state regulator revoked its license to operate, as reported by the Wall Street Journal. The FDIC and the Treasury Department claimed that the bank failed to comply with anti-money laundering requirements. The Justice Department alleged that the bank made hundreds of thousands of unauthorized withdrawals from customer accounts on behalf of fraudulent telemarketers. Regulators fined the bank $15 million and ordered it to pay $500,000 in restitution to its customers.Learn more about Credit & Lending