* Says OTS is preparing cease-and-desist orders
* OTS to require it to reimburse iAdvance customers
* OTS also considering civil penalties
* Says legal and compliance costs to rise
* Shares fall 3 pct after market
Jan 4 Meta Financial Group Inc (CASH.O) said it
may be put under cease-and-desist orders by its regulator and
will be required to reimburse customers of its iAdvance loan
program, sending its shares down 3 percent after market.
In a regulatory filing, Meta Financial said the Office of
Thrift Supervision (OTS) advised that it is presently preparing
a cease-and-desist order against both the company and its
banking unit, MetaBank.
The company also said the OTS will require the bank to
reimburse iAdvance loan customers an amount that is yet to be
In October, the OTS -- which regulates federal savings
associations -- found that MetaBank engaged in unfair or
deceptive acts and asked it to stop disbursement of loans under
the program. [ID:nSGE69C0IX]
The OTS is also currently considering the need to assess
civil money penalties against the banking unit, Meta Financial
said, adding it expects its legal and compliance costs to
increase as a result of the OTS actions.
Shares of the Storm Lake, Iowa-based company, which have
lost more than half their value since the OTS order in October,
were down 3 percent at $13.86 after market.
They closed at $14.30 on Tuesday on Nasdaq.
(Reporting by Jochelle Mendonca in Bangalore; Editing by