“In 2010 we switched processors to reduce our processing costs. Our business model since inception has been to offer consumers innovative prepaid card programs with low pricing and robust features. By switching issuing banks we can further reduce our cardholder fees without decreasing our profit margins,” stated Bruce Berman, CEO of Bank Freedom.
While the move may indeed by driven by costs, it seems impossible that the regulatory issues had nothing to do with the decision. While MetaBank is facing scrutiny, it seems too soon to count it out of the business, especially as no final order has been issued by the Office of Thrift Supervision. The move does raise the question of whether or not Bank Freedom is the first of many who will leave MetaBank.
Read the full press release at: http://www.businesswire.com/news/home/20110328005382/en/Prepaid-Debit-Card-Company-Bank-Freedom-Leaving