ICBA Regulatory Alert – Further Bank Reforms Are Also Needed: META BANK scammed many people. Be warned!!!

If banks were acting in an honest way, there would be no need for outside regulations. Guidelines for professional and scrupulous behavior may help those banks who are lead by honest people, but time and again, Meta Bank has done nothing but take advantage of its potential client base. This is a mind set that is immoral and unscrupulous.

Slap Meta Bank on the hand and they still don’t get it. Meta Bank helped to form the Network Branded Pre-paid Card Association, as a non-profit ( How they did that, I have no idea!!!!!) The NBPCA has hired Rupli Lobbyists in D.C. to promote the use and sale of the PREPAID BANK CARD.

META BANK is the largest provider of PREPAID BANK CARDS. To use plastic, a business must pay the plastic card provider for that privilege. META BANK encourages their customers to use the PREPAID BANK CARD often and frequently in their publicity as a way to help the PREPAID BANK CARD holder to improve their credit history. Just the opposite is true. META BANK makes a fortune simply by getting people to use their card. 

PAY IN CASH!!!!

November 29, 2010

ICBA Regulatory Alert  

Federal Deposit Insurance Corporation  

Final Overdraft Payment Supervisory Guidance   

 On November 24, 2010, the Federal Deposit Insurance Corporation (FDIC) issued its

final  guidance on overdraft payment programs

(FIL‐81-2010).

The final guidance sets forth the   FDIC’s expectations regarding FDIC‐supervised institutions’ management of overdraft  payment programs.

 Scope of Guidance  

According to the guidance, the FDIC “is particularly concerned about the risks posed by  automated overdraft programs, which are established programs, often partially or fully  computerized,” used to extend overdraft coverage using pre‐determined criteria.

The guidance states that “ad hoc overdraft payment services are not the focus of this guidance” but fails to specifically exempt these programs.  The guidance describes ad hoc overdraft programs as those “involv[ing] irregular and infrequent occasions on which a bank employee exercises discretion in a specific instance about whether to pay an item or not, as  a customer accommodation and not on pre‐determined or formulaic basis.”

 

Highlights of Guidance  

The   FDIC expects its supervised institutions to:

➢  Ensure appropriate board of directors’ oversight, including an annual review of an  overdraft program’s key features.

➢  Monitor programs for excessive or chronic customer use triggered by six occasions  where  a fee is charged in a rolling twelve‐month period  and take appropriate follow-up action, to include:

o    contacting the customer in person or via telephone to discuss less costly  overdraft coverage alternatives; 1

o   providing a reasonable opportunity for the customer to continue the fee‐based  program or choose another alternative.

➢ Allow customers to opt‐out of overdraft coverage for checks and ACH transactions similar to the Regulation E requirements for ATM and debit card transactions.

➢ Remind excessive and chronic users of overdraft services of their right to opt out of ATM and debit card overdraft coverage if they have opted in for such coverage.

➢ Review marketing, disclosure and program implementation to minimize potential customer confusion and promote responsible use.

➢  Train staff on program features and other alternatives.

➢  Institute appropriate limits on daily customer costs by limiting the number of  transactions subject to a fee or establishing a daily dollar cap on total fees.

➢  Prominently distinguish account balances from any available overdraft coverage  amounts as required by Regulation DD (Truth in Savings).  

➢ Review check‐clearing procedures to avoid maximizing customer overdrafts and  related fees through the clearing order. Examples of appropriate procedures include  clearing items in the order received or by check number.

➢ Monitor   and mitigate credit, legal, reputational, safety and soundness,  and other risks as  appropriate

➢  Consider:

o  eliminating fees for de minims overdraft amounts and instituting fees  reasonable and proportional to the overdraft amount.

o  using technology (text messaging, email, telephone or cell phone) to alert  customers regarding overdrafts.

o  providing financial literacy education and individual counseling on effective  management of personal finances.

Compliance and Examination  

The FDIC expects banks to have appropriate policies and procedures in place to comply with the guidance by July 1, 2011, and to prepare accordingly for the review of overdraft payment programs at each examination.

 1 Less costly alternatives to automated overdraft payment programs include linked accounts, a more‐ reasonably priced line of credit, or a safe and affordable small‐dollar loan consistent with the FDIC’s template.

If a bank like META BANK is basically corrupt in the way that they perceive how to do business, they will be on alert for ways for how to get around the laws. The META BANK President has a law degree; he appears to have no moral principles though. Slick operator better defines him.

Best Advice: Stay Away from META BANK. This advice is based on the experience of many regular people who have had really, really bad experiences with META BANK.

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