As previously reported, Green Dot Corp. recently secured approval for its formation of Green Dot Bank. Until now, Green Dot’s prepaid cards have either been issued by Columbus Bank and Trust Company, a division of Synovus Bank, or GE Money Bank (for it’s line of Walmart prepaid cards). According to an SEC filing made today, Green Dot has 180 days from the date of expiration of the Synovus agreement to switch its Synovus cards to Green Dot Bank.
In the SEC filing (an 8-K filed December 12, 2012), Green Dot disclosed that:
On December 6, 2011, the Company was notified by Columbus Bank and Trust Company, a division of Synovus Bank (“CB&T”), the primary issuer of the Company’s Green Dot-branded general purpose reloadable prepaid debit cards, that CB&T would not renew the Program Agreement, dated as of November 1, 2009, with the Company and Synovus Financial Corp. As a result, the agreement will terminate at the end of its initial three year term on October 31, 2012. Pursuant to the agreement, the Company has up to 180 days after expiration of the contract to transition the program to the Company’s newly acquired subsidiary bank.
How’s that for some pressure for Green Dot Bank to hit the ground running?