North Star Business Services LLC, a CUSO that did business with the liquidated Ensign Federal Credit Union, has been hit with a complaint by the NCUA for ignoring requests to stop collecting payments on loans that were allegedly owned by Ensign.

According to the complaint filed Nov. 8 by the NCUA, which was the liquidating agent of Ensign, the agency was authorized to disaffirm and repudiate any contracts or arrangements on 18 commercial loans to which the credit union was a party. The regulator shut down the Henderson, Nev.-based Ensign Nov.13, 2009 because of its declining financial conditions. The NCUA authorized EDS Credit Union in Plano, Texas, to purchase and assume Ensign's member share accounts. EDS changed its name to InTouch Credit Union.

On the same day of Ensign's closure, the NCUA said it sent notice to NSBS's principals Mark B. Moody and David L. Osburn to disaffirm and repudiate the servicing arrangement on loans owned by Ensign. It is not known if NSBS responded to the notice. However, on March 24, 2010, the NCUA said NSBS sent a request to borrowers to continue making payments on the loans and threatened them with servicing fees if they did not comply, according to the complaint.

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