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Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Federal banking regulators this thirty days cracked straight down on MetaBank, a significant prepaid credit card issuer, an action that tossed into concern the pending initial no credit check payday loans online in Maryland general general public providing of prepaid credit card system supervisor NetSpend Corp.

Austin, Texas-based NetSpend is planned to cost its long-planned IPO on Thursday, in accordance with 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 company, Storm Lake, Iowa-based Meta Financial Group Inc., reported towards 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 new loans under its iAdvance item at the time of Wednesday, plus it put controls on its company of issuing loans in advance of customers’ receipt of income income income tax refunds, alleged anticipation that is tax-refund.

The OTS suggested us on Oct. 6 it has determined that the lender involved with unfair or acts that are deceptive methods in breach of the Federal Trade Commission Act and OTS advertising laws relating to the bank’s operation of this iAdvance system and needed the lender to discontinue all iAdvance line-of-credit origination activity .

The filing will not offer facts about just what the OTS available at fault with iAdvance, which will be a short-term loan product which MetaBank calls a “microloan” while some news reports call it a pay day loan. Continue reading Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO