Line of Credit Linked to U.S. Prepaid Card

ePaynews.com Jun 20 2008 :

Meta Payment Systems (MPS) is offering small loans that are deposited on a prepaid card to the millions of Americans who cannot afford conventional bank loans.

The U.S. prepaid card firm originally launched the iAdvance Line of Credit product in February 2008, but is now enhancing it with the help of Fiserv and TransUnion.

The basic version of iAdvance does not involve any credit checks. However, in autumn 2008, MPS will launch a version of iAdvance which will offer lower interest rates and longer payback periods to credit-worthy borrowers. Currently, the company charges $2.50 for each $20 borrowed, equal to an annual percentage rate of 150 percent.

TransUnion says it will provide MPS with risk management and credit decisioning systems for the new version of iAdvance, while U.S. payments software firm Fiserv will supply processing and receivables management technology.

Once a borrower has applied for either a basic or enhanced iAdvance loan, the money is available immediately on a prepaid card issued by MPS’ parent Sioux Falls, South Dakota-based MetaBank. The borrower’s repayment performance is reported to the three main U.S. credit reference agencies, Equifax, TransUnion and Experian.According to MPS, the loan application process takes just a few minutes.

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