Regulators Hit MetaBank for $5.2 million Over iAdvance Program

July 18, 2011
Des Moines Register 

Iowa-based MetaBank has come to an agreement with federal regulators over a now-discontinued program that offered payday and tax refund loans via prepaid debit cards. In October, the Office of Thrift Supervision ordered the bank to end the iAdvance program, claiming the loans violated unfair or deceptive trade practice laws. The program provided consumers with debit cards and gave them the option of paying a fee to obtain a loan onto their debit card if they had no more money in their bank accounts. While the interest rates varied, they averaged between 120 percent and 650 percent. Additionally, customers paid a fee of $2.50 for every $20 of an iAdvance loan. On July 16, the company accepted a cease-and-desist order and agreed to reimburse $4.8 million in fees charged to repeat customers. The bank also must pay a $400,000 fine and provide regulators with several management and compliance plans.
Web Link







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`