MetaBank

MetaBank is a savings bank headquartered in Storm Lake, Iowa. Meta Financial Group, Inc. (NASDAQ: CASH), is the holding company for MetaBank, Meta Payment Systems, and Meta Trust Company. The Meta Payment Systems (MPS) division of MetaBank based in Sioux Falls, South Dakota, is engaged in the prepaid card industry and provides payment solutions delivered nationally in collaboration with other partners. MPS focuses on offering product solutions in the following areas: (i) prepaid cards, (ii) credit cards and lending solutions, and (iii) ATM sponsorship.

Metabank building in Storm Lake, Iowa

In October 2010, MetaBank was ordered by bank regulators of the federal Office of Thrift Supervision (since subsumed as part of the Office of the Comptroller of the Currency) to halt use of their iAdvance lending program associated with some pre-paid MetaBank debit cards, as they had been engaging in deceptive trade practices.[1][2] The iAdvance program offered MetaBank debit card holders with the direct deposit feature an option to withdraw or spend funds when their account held an insufficient balance, with the shortage to be advanced by a payday loan secured by their next upcoming direct deposit. The loans had a maximum term of 35 days, steep interest rates, and a transaction fee of $2.50 for each $20 increment of the advance.[3]

References

  1. ↑ "OTS Bank Regulators Penalize MetaBank Over Payday Loans". ResponsibleLending.org. 2011-07-18. Retrieved 2012-07-19.
  2. ↑ "MetaBank to pay 5-2M over deceptive iAdvance Loans". DesMoinesRegister.com. 2011-07-18. Retrieved 2012-07-19.
  3. ↑ Rust, Adam. "MetaBank Complies with OTS Cease and Desist Order". Bank Talk blog. Bank Talk. Retrieved 2012-07-19.

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