Norwest Bank of Minnesota and Fleet National Bank of Massachusetts are each suing a Denver-based subprime automobile lender and its owner for money allegedly owed on bonds backed by auto loans.

The banks, which acted as trustees for the bonds, say that Douglas Kemp, who controls subprime auto lender Vanguard Alliance Corp., illegally kept loan payments owed to bondholders and refused to let auditors see loan records. Vanguard filed March 15 for protection under Chapter 11 of the Bankruptcy Code.

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