Federal banking regulators this thirty days cracked straight straight down on MetaBank, a significant prepaid credit card issuer, an action that tossed into concern the pending initial general public providing of prepaid credit card system supervisor NetSpend Corp.
Austin, Texas-based NetSpend is planned to expense its long-planned IPO on Thursday, in accordance with reports in the economic cables. But its close ties to MetaBank caused rounds of conjecture about if the IPO will in truth take place. A NetSpend representative claims he canвЂ™t comment.
On Tuesday, MetaBankвЂ™s parent business, Storm Lake, Iowa-based Meta Financial Group Inc., reported to your Securities and Exchange Commission that work of Thrift Supervision had taken enforcement actions against MetaBank. The OTS banned MetaBank from issuing any brand brand brand new loans under its iAdvance item at the time of Wednesday, and in addition it put settings on its business of issuing loans prior to clientsвЂ™ receipt of income income tax refunds, alleged tax-refund expectation loans.
вЂњThe OTS recommended us on Oct. 6 so it has determined that the lender involved in unfair or acts that are deceptive practices in breach of the Federal Trade Commission Act and OTS marketing regulations relating to the bankвЂ™s operation associated with the iAdvance program and needed the lender to discontinue all iAdvance line-of-credit origination task by Oct. 13, 2010,вЂќ Meta FinancialвЂ™s filing states.
The filing will not offer information regarding exactly just what the OTS available at fault with iAdvance, which will be a short-term loan product which MetaBank calls a вЂњmicroloanвЂќ while some news reports call it a cash advance. Read more