It looks as if thousands of former I-Advance customers are getting restitution payments this week.

In July, MetaBank announced that it had agreed with the OTS to provide approximately $4.8 million in restitution payments to its former i-advance customers.

The payments are being delivered through direct deposit on to MetaBank-issued prepaid cards. (more…)

MetaBank says that the Office of Thrift Supervision’s cease and desist order against the Iowa thrift resulted in an after-tax loss of $3.4 million. MetaBank was cited for a number of significant legal problems. The OTS said that MetaBank had engaged in unfair and deceptive practices in its i-advance credit program. The i-advance offered credit to holders of certain MetaBank-issued debit cards. When consumers (more…)

First, the OCC has clarified that the June 8th guidance from the OCC (“Deposit-Related Consumer Credit Products“) is intended only for debit cards attached to a traditional deposit account.

Prepaid is not covered by this guidance. Still, a person at the OCC intimated that a similar guidance is forthcoming for prepaid debit cards. (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…)

MetaBank‘s loss may be Republic’s gain.

That could be an unintended consequence of yesterday evening’s Supervisory Directive from the OTS that pushed MetaBank out of the refund anticipation loan market.

Republic Bank (Kentucky) is an FDIC-regulated bank that has provided refund loans to Jackson Hewitt for some time. In 2010, Republic stepped in and added to its commitment to Jackson Hewitt after the tax preparer lost their RAL capital from Pacific Capital Bancorp. Republic had made about one-quarter of their RALs. In 2010, they made all Jackson Hewitt’s RALs. Jackson Hewitt couldn’t find a full replacement for the loss of the PCBC money, so they could only offer RALs in about half of their stores.

This had a significant effect upon Jackson Hewitt. JTX recorded an impairment to goodwill of $274.1 (more…)