Numerous companies appear to be seeking a way to return short-term credit to the debit card platform.

Cash America (8-K, April 22, 2011): In the past, the MLOC services channel generated its earnings through loan processing services the Company provided for MetaBank related to the iAdvance MLOC product, as well as from fees generated from participation interests the Company acquired in the receivables originated by MetaBank in connection with the iAdvance program. The iAdvance program ended on October 13, 2010. The Company intends to continue pursuing the development of new MLOC opportunities during 2011.

It would not surprise me if many advocates mistakenly assume that this issue (more…)

NetSpend’s annual report says that they have been told by the Office of Thrift Supervision says any new relationships between MetaBank and existing program partners will require OTS approval.

NetSpend is an existing partner/program manager for cards issued by MetaBank. This is an interesting wrinkle (more…)

Bank Freedom will no longer use MetaBank as the issuer for its prepaid debit cards. Bank Freedom follows a similar move by NetSpend to move business away from MetaBank in the wake of the regulatory interventions made against the Storm Lake, Iowa savings bank by the Office of Thrift Supervision.

Bank Freedom isn’t the first to distance itself from MetaBank. NetSpend has already begun to seek new relationships. Moreover, they have been fairly open about their motives. NetSpend (more…)

The Bancorp Bank (TBBK) will issue some of the debit cards marketed and distributed by NetSpend under a new, multi-year agreement announced this morning.

While not an exclusive agreement, it is an important event that marks the first step in NetSpend’s Bank Diversification Strategy.  NetSpend has been clear about its desire to find more bank partners. Last year, NetSpend’s initial public offering was upset when the OTS issued a directive to MetaBank on the week that NetSpend had intended to (more…)

A MetaBank 8-K filing says that the OTS may require the Iowa thrift to compensate its former iAdvance customers.

MetaBank says that the OTS is preparing a cease-and-desist order. Their speculation, which has to be fairly substantive if it is released to investors, is that there will be civil money penalties. MetaBank’s message to its (more…)