NetSpend Partners With First Acceptance to Offer Underbanked Customers a New Way to Pay

/ Source: GlobeNewswire

AUSTIN, Texas, Feb. 15, 2011 (GLOBE NEWSWIRE) -- NetSpend Holdings, Inc. (Nasdaq:NTSP), a company whose mission is to empower the estimated 60 million underbanked consumers in the United States with the convenience, security and freedom to be self-banked, today announced an agreement with First Acceptance Corporation (NYSE:FAC) that will give First Acceptance the opportunity to significantly simplify the lives of its approximately 150,000 policyholders through the use of a NetSpend prepaid debit card. First Acceptance is a leading provider of non-standard auto insurance and related products through more than 380 retail locations in 12 states. The two companies expect NetSpend prepaid debit cards to be made available at First Acceptance retail locations in early 2011.

A safer alternative to cash and designed to be a less expensive alternative to a traditional bank account for the underbanked consumer, NetSpend prepaid debit cards produce significant benefits for the underbanked consumer and the First Acceptance agent. The cards save consumers time by empowering them to pay their insurance premiums electronically—which eliminates the need to travel to the agent's office and pay in person. For First Acceptance agents, the two companies believe that the cards will result in higher customer retention and provide a more reliable, secure, and less labor-intensive payment mechanism, greatly reducing the payment collection work on site.

"According to our data, insurance premiums are one of the top ten payments our current cardholders make every month," said Dan Henry, chief executive officer, NetSpend. "That's proof that NetSpend prepaid debit cards offer an easy, cost-effective and time-saving option for underbanked consumers to pay their premiums. We look forward to working with First Acceptance to bring this convenience to their policyholders as well."      

"We are continuously searching for ways to simplify and enhance the lives of our valued customers," said Steve Harrison, chief executive officer, First Acceptance Corporation. "Giving our unbanked policyholders access to safe and convenient financial services through NetSpend reinforces our commitment to looking for new and innovative ideas to meet the needs of our customers."

First Acceptance will fully integrate with the NetSpend technology platform, allowing it to provide interested policyholders with an instant-issue temporary card that can be activated via phone or web and then loaded at one of NetSpend's 100,000 reload locations after the customer clears NetSpend's federally-mandated identity verification process. The card can then be used immediately for paying bills and making purchases. A fully functional, personalized card will be delivered to the customer in five to 10 business days, giving him or her access to a full suite of product features including free direct deposit, free online money transfers between cardholders, complimentary AD&D insurance coverage and a savings account that currently offers 5.00% APY—one of the highest in the industry.

About NetSpend

NetSpend is a leading provider of general-purpose reloadable (GPR) prepaid debit cards and related financial services to the estimated 60 million underbanked consumers in the United States who do not have a traditional bank account or who rely on alternative financial services. The company's mission is to develop products and services that empower unbanked consumers with the convenience, security and freedom to be self-banked. Headquartered in Austin, TX, NetSpend is traded on the NASDAQ stock exchange under the symbol NTSP.

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About  First Acceptance Corporation

First Acceptance Corporation (NYSE:FAC) is a leading provider of non-standard personal automobile insurance and ancillary products. Headquartered in Nashville, TN, First Acceptance markets its services through the Acceptance Insurance, Yale Insurance, and Insurance Plus brands. The company operates over 380 retail locations in 12 states. For more information, please visit us at .

CONTACT: Press Contacts: Brad Russell NetSpend (512) 539-5932 (office) (512) 743-4507 (cell) Suzanne Dawson Linden Alschuler & Kaplan (212) 329-1420 (office) (908) 242-7162 (cell) Mike Bodayle First Acceptance Corp. (615) 844-2907 (office)