A plan to convert Finance Factors Ltd. to a state-chartered bank is being questioned by some shareholders who have requested more information on the proposal.

The 54-year-old company, formed by six Hawai'i families, holds a license as a depository financial services loan company. Changing its charter to a bank would allow it to offer checking accounts, debit cards and lines of credit for business customers.

The shareholder group balked at approving the change when it met for a vote on June 7. Finance Enterprises, the parent company of Finance Factors, said it is working to provide the group with more information and that a vote is scheduled for July 5.

Stephen Jones, an attorney for some of the shareholders, confirmed the group is requesting more information.

Finance Factors said it believes most shareholders are in favor of the proposed changes and that it is committed to obtaining necessary expertise and resources for the proposed changes.

James H. Wright, a Financial Enterprises director, said there is substantial concern among some directors and shareholders about the plan. As a bank, Finance Factors would be competing with larger and better-capitalized financial services firms.

"I am opposed to converting Factors to a bank from an industrial loan company because the company lacks the required capital and management expertise to succeed," Wright said.

Wright called for an independent review of the proposed plan's feasibility and its costs.

A court is scheduled to hear today whether Ronald Kotoshirodo, bankruptcy trustee for the estate of late U.S. Sen. Hiram L. Fong, will be allowed to cast a vote based on shares Fong owned in Finance Enterprises, Kotoshirodo's attorney Jerrold Guben said.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.