Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO
Federal banking regulators this month cracked straight down on MetaBank, a significant card that is prepaid, an action that tossed into concern the pending initial general general general public offering of prepaid credit card system manager NetSpend Corp.
Austin, Texas-based NetSpend is planned to rate its long-planned IPO on Thursday, in accordance with reports in the monetary cables. But its ties that are close MetaBank caused rounds of speculation 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 towards the Securities and Exchange Commission that any office 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, and it also put settings on its company of issuing loans in advance of clients’ receipt of income income tax refunds, alleged tax-refund expectation loans.
“The OTS recommended us on Oct. 6 so it has determined that the lender involved in unfair or acts that are deceptive methods in violation of the Federal Trade Commission Act and OTS advertising laws relating to the bank’s operation associated with iAdvance system and needed the financial institution to discontinue all iAdvance line-of-credit origination task by Oct. 13, 2010,” Meta Financial’s filing claims. […]