MetaBank Pays Restitution to its I-Advance Customers
October 12th, 2011
It looks as if thousands of former I-Advance customers are getting restitution payments this week.
[Not all former META BANK’s customers receive their pay back: PLEASE LOOK AT THEIR INPUT BELOW]
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.
[Pre-paid cards should be cashed immediately when dealing with META BANK. META BANK has full use of your money while it is still on the PRE-PAID CARD]
The payments stem from a July 15th order from the Office of Thrift Supervision.
“MetaBank is adding funds to your prepaid card account ending in **** in the amount of $****.**. This amount is intended to fully satisfy the payment owed to you pursuant to an order issued by the Bank’s regulator, the Office of Thrift Supervision, on July 15, 2011.
If we determine that the above-referenced prepaid card account is no longer active, we will send your payment to you by check at the last known address we have for you in our records. [ Then the scam began yet again for these META BANK former customers with this one simple contingency; this would become META BANK’s self created loop-hole to get out of having to pay all of the former iAdvance customers who had been scammed.]
If you have any questions about this deposit to your prepaid card, please call our toll free customer service number 866-751-2931. “
Comments on Bank Talk seem to reveal that customers are thrilled, and in some cases surprised, by the arrival of dollars into their accounts. One commenter even asked “how real is this?” Well, “so626″ it is real.
The OTS order said that MetaBank had failed to provide a plan for repeat customers (“recurring use”) of the i-advance product.
The OTS required the bank to stop the program and to provide restitution for some consumers.
The recurring use issue was part of a recent guidance submitted for comment by the Office of the Comptroller of the Currency.
In that guidance, the OCC said that it wanted banks to have a plan in place for consumers that make frequent use of the new deposit advance products. Regions, Wells Fargo, US Bank and Fifth Third have all developed iterations of these products.
The OCC is letting the big banks get away with providing a product that is remarkably similar to the one that the OTS issued a cease-and-desist order against in 2010.
Other MetaBank News
One of the requirements of the order was that MetaBank could not make any “golden parachute” payment to an executive without giving a 30-day notice to the OTS. The OTS stipulated that a requirement for such a payment would rest upon the compliance by MetaBank of 12 C.F.R. Part 359 and 12 C.F.R. Part 563, Subpart H. These are rules that govern executive pay. Golden parachutes are a name for severance packages given to executives when they depart from the company. With the dissolution of the OTS, MetaBank issued those notices to the OCC and to the Federal Reserve.
In what could be an unrelated event, MetaBank announced that CEO James S. Haahr retired from the Board of Directors on September 30th.
Filed under: unbanked | Tags: i-advance, MetaBank, OTS, restitution
23 comments
JA
October 12, 2011
I received email saying I will get refund check.. But they do not have my new address…. I have been trying to call the customer service number. But never an answer [ Ah ha….this is typical of META BANK: impossible to get problems resolved by phone and META BANK’s lack of proper record keeping which helps META BANK, but which harms the customer.]
cakes0329
October 14, 2011
Hi JA,
I called IAdvance today, and they did not have my new address but my parents address as my mailing address. They informed me if i wanted my check mailed to my address but i declined. They did inform me that a check was mailed to me on 11/12. As of today, I haven’t received it. They were able to verify my old address email address by my social security number. The only thing is they could not tell me the amount of the check, but they informed me that the letter is confirmation on the amount that i would receive. I dont know if you are calling IAdvance at 866-751-2931. Hope this helps. [ That is the way one consumer should be trying to help another; this response sounds genuine.]
hihohiho
October 17, 2011
I’ve recieved nothing – no e-mail or direct deposit. I used this service for 1.5 years and paid in full! Why are some getting a refund and others not? Anyway to find out? [I wish that I had an answer for this question. I would like to hear what happened or happens in this situation.This commenter needs a genuine answer.]
Stephanie
October 18, 2011
Have they given any information out about how they are choosing who is getting the refund? How much did iadvance have to screw you over in order to get a refund? [This is a very good question. Have we ever seen what the answer is to this question.]
hihohiho
October 19, 2011
Iadvance told me today they were required to use a formula provided by the feds to determine who will be refunded fees. I used the service consistently for 1.5 years and was not considered eligible by their calculations…. My guess is this was based on deposits – and those struggling to pay their balance – not those like me who were trapped and having to re-loan every month. [This is why I still don’t trust META BANK… META BANK has caused so much misery for their customers….Please don’t use META BANK…. all that former customers can do is to advise other potential customers so they will not have to be treated like we were at META BANK.]
Hmussmann
October 24, 2011
I got a check last monday but my bank would not cash the funds right into my account. There is no signatures on the checks. It’s now a week later and i’m still waiting for them to send the funds to my bank. [ META BANK sent out unsigned checks…. What is there within this comment that any potential future customer might find as a “Red Flag” indicating that META BANK has poor internal management practices.]
MSANGIE
October 25, 2011
I received an email that told me the amount I would receive and that it was mailed, but it went to my old address. I was then directed to fax my new info. It took days as they only have 1 fax #.I was informed that I would receive a re-issued check after they receive the original back. Now I cant get any answers,They wont even pull up my account when I call. I have been given nothing but a run around, and I have no one to complain to. [This is very typical of how META BANK has operated … This is why former customers say that it is frustrating to deal with META BANK. … META BANK says they only have one FAX line into the bank, but that they are the biggest provider of PREPAID Bank Cards … This just doesn’t make sense.]
Kyle
October 26, 2011
Interesting-what started as good news has quickly gone south for me as well. I received an e-mail telling me the amount I would receive. It did not mention where it would be sent, but since I had received marketing info from Metabank, I presumed they did have my correct address. The e-mail also did not mention that I could/should verify my address with them. [ It seems rather typical that META BANK suddenly creates impossible rules for the customers so they can’t get the money that is rightfully theirs. This happened to me too.] After two weeks and no check, I called customer service and learned that 1- my check had been sent to a former address, 2- IAdvance is ‘completely separate from Metabank or Accountnow, which DID have my correct address, and 3- I need to fax my Driver’s license, pay stub, and SS card to the office to have the check sent to my correct address.[ What a big run around!!!] And yes- that is assuming that the check is returned to them. I am going to find a way to follow up on this- perhaps through the Office of Thrift Supervision- who ordered them to issue refunds. Based on the events of the last two weeks I have the impression they haven’t cleaned up their act in the least.[ It looks like you are right.]
Hmussmann
October 26, 2011
I keep getting the run around as well. Meta bank says you have to talk to i advance and i advance tells you to talk to meta bank. GRRRRR! [ This is the scam META BANK began with and the only one they know; it is the run around that leads to nothing by way of a solution or to problem solving.]
ed
October 27, 2011
Like Kyle above the same situation here. I actually called back 3 days after i faxed the info to see if they had received my change of address and they said yes. Today 10/27 I galled to get status and they said the faxed they received was not readable? I am beginning to think the way they are handling this is some form of stall tactics to buy time while they can appeal to the OTS? [ Stall Tactics!!! In an effort to go back to renegotiate with the OTS….It sure looks like that. META BANK performs in ethically immoral ways over and over again.]
so626
October 27, 2011
i think they are stalling also because they also told me that my information was dark i told them too re copay it and make it lighter i dont understand the problem im going to be calling them everyday unitl i receive my check but other ppl who still have a netspend card already received their money….. [so626 was told that his/her information was “Dark” … What language is META BANK using here? This is a “run-around” created by META BANK, and this is the only way that META BANK has ever behaved in the past. META BANK’s conduct is irresponsible and immoral.]
Tina
October 28, 2011
Has anyone gotten this check and it cleared the bank? [ I would like to know that too. META BANK has continued the internal practices that set this whole situation into place for them in the first place.]
Sam
October 31, 2011
Glad to know I am not the only one going thru this.. I too received an email stating I would be receiving a check only to call 2 weeks later and be told that the address the check was sent to was wrong. [How many wrong addresses can META BANK come up with for an excuse? Actually, I Knew that META BANK had my correct address, but they told me that I hadn’t ever given them my contact information when I opened up the PREPAID TRAVEL CARD. META BANK had mailed one check to me at my address, but then told me that they didn’t have my contact information because I hadn’t given it to them. I had given them all of my contact information, but META BANK was lying to me …. And META BANK is also lying to all of you.]
I then had to fax a copy of my DL, SS card, and recent utility so that my address could be changed. Funny that I didn’t have to submit to such probing requests when I began using their services. In fact I never had to speak to anyone to initiate any transactions. I didn’t send all the information requested for security concerns, I mean having a copy of ur DL,SS number and address is just too easy to become a victim of ID theft. I have yet to call and follow up, I will today and let u all know the outcome. [META BANK only knows how to scam people. The way that META BANK acts is criminal.]
T L
October 31, 2011
I received a check in the mail, unsure what it was for. I am taking it to the bank today. Hope it goes through. After reading everyone’s comments and researching on the Internet, seems like this money will be stalled. I will write a comment later today on what happens at the bank. [ I would like to hear if TL got her money out of that check]
Danielle
October 31, 2011
Received email also. Thought it was Spam. Called Account Now – who I refuse to deal with anymore because of IAdvance – that said it was true. Those fools have my old addr from 2007.. So stupid.. when MetaBank has my current addr. This is my 4th time faxing them info… Even went to the post off to change of addr to cover bases. Why am I going thru all of this for the trouble they caused? That’s why I don’t do loans anymore — just pay with cash! Horrible co. [META BANK is stalling in an effort to keep customer’s money, once again. What will stop META BANK from doing this kind of scam over and over again to innocent victims?????]
sihi
November 4, 2011
I really don’t understand why iadvance would send a check to an old address not knowing if you still live there instead of emailing everyone for updated info. I have sent in updated infomation 3 times and have still as of today nov.4th 2011 haven’t received my check and feel as though they are giving me a run around. [ Your suggestion makes sense, but META BANK is playing a game still. META BANK has acted this way toward their customers over and over again which put META BANK in a position to get complaints about how they treat customers. META BANK has never served customers; META BANK has only scammed customers. Apparently, META BANK can’t figure out another way to operate that would be ethical, morally acceptable and decent.]
AJ
November 8, 2011
I received the email about the refund also. The amount was included. I called the # listed and they advised me the check was sent to my old PO Box. They gave me instructions on how to update my addess by faxing in 3 pieces of info. I faxed it in, waited for over 2 weeks and they’ve updated the address but the check hasn’t been returned yet. I was told that if the check doesn’t come back to them by 11/12, they will re-issue a new check to the new address automatically. Until then, I will just wait patiently and see what happens. Thank God I am not pressed for money. Will provide an update when it comes. [ I, for one, will be anxious to hear if META BANK ever gets the money to this former customer too.]
Quincy
November 10, 2011
Sorry to hear so many complaints. i didn’t believe the email received until i noticed a $2800.00 balance in my account 3 days later. It’s true. Maybe give it some time? They may be doing disbursements in phases. Hope you all receive them before the holidays…Keep pursuing them. Don’t give up!
[Wait!!! The money is supposed to be put on the PRE-PAID Card and Quincy’s was on his/her PREPAID CARD in three days, but others complain that META BANK is mailing their money to the wrong address although META BANK had their correct email address. It may be that some customers had closed out their accounts with META BANK, but so far I haven’t seen anything responsible in the way that META BANK has handled this situation.]
Blackdia5204
November 14, 2011
Got my refund on my card. Didn’t even know it was there until I got the email. Want to know how they figured out the refund amount. [ How was the amount figured out and why was it so easy for some former customers to get their money back.]
jackie alvarez
November 15, 2011
how do u know if your getting one?? [ That is a really good question. If you find out why some people got emails and others just had money placed on their cards. If you find out the reason, I would like to know what it is.]
HWoodruff
November 16, 2011
I need to know why only some individuals received a refund and others did not. I happened to be one of them who did not receive a refund. I was very diligent in paying back my iadvance each time and used it very frequently. I feel all should have received some type of percentage in receiving a refund and not some. We were all “taken back” for a brief moment in our financial lives. Who can I contact besides iadvance/metabank as to why I did not receive a refund. I truly want a concrete and accurate answer.[ I have only gotten the run-around from META BANK because that is what META BANK does. You should be given a concrete and accurate answer.]
Stephanie
November 16, 2011
I received my check in the amount of 127.50 and it cleared my bank weeks ago. I didn’t have any trouble with it. [Two people named “Stephanie”???? Or did Stephanie who wrote in October get her situation resolved with META BANK??? I think that this is a second Stephanie. This “Stephanie” offers no insight into how she got money and the others didn’t. We are all happy for this “Stephanie” but no one else’s situation has been resolved.]
Daniel
November 23, 2011
I am to receive a refund. iAdvance had the address wrong the first time, faxed required documentation for address change, address change was accepted.
Why, after two weeks, have they not reissued the check. Isn’t it funny, when you owe a bank money, they take your money from your account immediately, but when a bank owes you money, you have to hop through all these ridiculous hoops. Just for some interest, why is the interest ALWAYS in their favor? The OTS should have forced them to pay interest on this illegally obtained money. I bet they would pay out immediately, if they had to pay this interest. iAdvance, JUST ran the batch process and get these checks sent out, I would bet that it would take no more than 2 hours to run the batch and print the checks. You already have a bad name, why make it worse. MAIL THE CHECKS OUT.
[I experienced a similar situation as Daniel. META BANK set up all the rules for how they operate and there aren’t a lot of people enforcing proper behavior by banks from the outside, it seems. This is why consumers must follow up with their elected officials and any and all other potential resources to get this kind of banking practice, such as META BANK practices their business, changed because META BANK doesn’t seem to have any internal moral compass to be able to self-regulate in morally acceptable ways for the greater community. META BANK is only dedicated to making a profit and not to improving customer service. META BANK lied to me so they could hold onto my money for an extended period of time which gave them an interest free loan from me. … META BANK is a scam.]
http://banktalk.org/2011/10/12/metabank-distributes-refunds-to-i-advance-customers/
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