NetSpend – MetaBank’s own guidelines  © 2003-2010 NetSpend Corporation


[Note: Meta Bank kept my money from me when I needed it the most saying that I had not given them my contact information. I had handed them $5,000 in cash the week before, and they asked me where I would be going and for how long as I used my pre-paid travel card. To be able to get the card, I had to give Meta Bank all of my contact information. I became very suspicious of Meta Bank when they lied to me about not having given them my contact information.

A. Why would I  just give $5,000 in cash to someone who didn’t get this kind of information from me?

B. Why did Meta Bank then feel the need to lie to me, since it was obviously a lie?

C. This lie is one in which Meta Bank is basically saying that they are allowing pre-paid cards to be sold in a very sloppy way so that they are not too particular about who has them or not. Meta Bank was saying they were disregarding the Patriot Act; did they recognize this? They put this in writing. ]

{The following comes from NetSpend-MetaBank’s own website:}

The USA Patriot act is a Federal law that requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. You will be asked to provide your name, address, date of birth, and other information that will allow us to identify you. You may also be asked to provide documentation as proof of identification. Approval of your prepaid card application is contingent upon successfully passing this mandatory identification confirmation.

2 [Note: Something to read carefully for meaning.]

NetSpend Savings Accounts are issued by Inter National Bank, member FDIC. Interest is calculated on the average daily balance of your Savings Account and paid quarterly. Annual Percentage Yield (APY) is accurate as of July 1, 2010. This is a promotional rate and is subject to change without notice. [Note: “subject to change without notice” in the fine print. Is the customer really negotiating the terms of a contract that they fully understand?]

No minimum balance is necessary to open the account or obtain the yield. A limit may be placed on the maximum amount of funds you maintain in the account. The limit may be exceeded by interest accruing on the funds.[Note: Do we really understand what has just been stated and how this really affects us??]The limit may be changed from time to time. Fees could reduce the earnings on the account.

[Note: ” The limit may change from time to time” – So what does that mean then? “Fees” could reduce the earnings on the account. Ah ha, “fees” are anticipated then. What input has the customer actually had in negotiating the terms of this contract of even in finding out what the terms really mean that are being offered in this contract???]

3     {Note: Study these facts to see what they actually mean for the consumer:} NetSpend Prepaid Debit Cards are issued by Inter National Bank and MetaBank™, members FDIC; please see back of your card for its issuing bank. NetSpend is an authorized Independent Sales Organization of Inter National Bank and MetaBank. Use of card subject to funds availability. Transaction fees, terms, and conditions apply. See Cardholder Agreement for complete details. All trademarks and service marks are the property of their respective owners.[Note: NetSpend is an “authorized Independent Sales Organization” of Inter National Bank and Meta Bank. The banks are members of FDIC, but is NetSpend and does the FDIC cover this agreement? How does the FDIC help the consumer in this agreement?]

[Note: “Use of the card is subject to the availability of funds.” What does this mean? If I put money on the card, my own cash money, won’t it be there for me to use when I need it?]

[Note: “Transaction fees, terms, and conditions apply.”  Is this how the bank’s will make their money off of my use of the card? There has to be some way that the bank makes money, and that needs to be made very clear to each and every customer so that we are on a level playing field. This statement is far too vague.]

[Note: “See Cardholder Agreement for complete details.” Where is this? This implies to me that there is absolutely no regulation over this fast paced and quickly evolving banking industry. Wait!!!! This is a banking industry and that should imply stability for customers ! ! ! ! We don’t want fast paced and rapidly changing bank systems. We want stability when we bank. I got that wording from Meta Bank’s hire page for new employees. Meta Bank is very much out of touch with customer’s actual needs. On the other hand, Meta Bank is very much in touch with their own marketing skills and how to market a product to your perceived needs. This is quite different from actually creating a product that will address your real needs. It is always the same faulty product, but with a new name.]

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