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Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

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Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Federal banking regulators this thirty days cracked straight straight straight down on MetaBank, an important card that is prepaid, an action that tossed into question the pending initial general general public providing of prepaid credit card system supervisor NetSpend Corp.

Austin, Texas-based NetSpend is guaranteedinstallmentloans.com credit planned to amount its long-planned IPO on Thursday, relating to reports regarding the monetary cables. But its close ties to MetaBank caused rounds of conjecture about whether or not the IPO will in truth take place. A NetSpend representative claims he can’t comment.

On Tuesday, MetaBank’s moms and dad business, Storm Lake, Iowa-based Meta Financial Group Inc., reported into the 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 as of Wednesday, plus it put controls on its company of issuing loans prior to clients’ receipt of income tax refunds, alleged tax-refund expectation loans.

“The OTS encouraged us on Oct. 6 so it has determined that the lender involved in unfair or misleading functions or methods in breach of the Federal Trade Commission Act and OTS marketing laws regarding the the bank’s operation associated with iAdvance system and required the financial institution to discontinue all iAdvance line-of-credit origination task by Oct. 13, 2010,” Meta Financial’s filing claims.Read More »Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO