Ventra Prepaid Banking Partner Has Long Reputation For Legal Difficulty

Metabank is a component associated with the Ventra system partnership that is public-private

Beyond the every day payday loans Hawaii issues plaguing the Ventra rollout lies a possibly more fact that is troubling The banking partner plumped for included in the Ventra system seemingly have a long reputation for appropriate issues pertaining to previous involvement in prepaid debit schemes along with other tasks.

The public-private partnership set up to perform Ventra includes (at the least) four entities aside from the CTA: First information, Cubic Transportation Systems, Mastercard and Metabank.

Metabank, section of keeping business Meta Financial Group, Inc., ended up being selected by Cubic as being a partner when you look at the prepaid debit card part of this program, based on the CTA. Situated in Storm Lake, Ia., Metabank ended up being as soon as called First Midwest Financial and it has for ages been associated with producing and running payment that is electronic such as prepaid debit card programs, to some extent through its Metapay subsidiary.

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Nonetheless, Metabank has skilled a few appropriate and ethical issues since 2004. Several of those dilemmas are associated with problems such as for instance fraudulence, participating in misleading company techniques into the subprime lending market as well as directly associated with running a prepaid debit card system similar to Ventra.

A quick breakdown of Metabank’s publicly-available appropriate history programs:

Most of that leads to a different question that is key that which was the selection procedure the CTA utilized in picking its lovers when it comes to Ventra system, and exactly exactly what requirements ended up being found in determing Metabank’s skills? Too, exactly just what oversight existed throughout the creation regarding the Ventra that is entire system?

In the event that Chicago City Council chooses to go right ahead and hold hearings over issues with the rollout associated with Ventra system, as some aldermen wish to accomplish, there’s apt to be a entire variety of concerns the council users can ask of officials they call to testify.

Here’s another place that is good start.

In role One of Ward Room’s series on feasible City Council hearings on Ventra issues, we looked over the factors why CTA joined right into a partnership with personal businesses for Ventra. In role Two, we examined means Ventra’s banking partner may be profiting from costs.