Consumer complaint received 2022-10-07
Company: Netspend Corporation
State: OH
Product: Credit card or prepaid card
Sub-product: General-purpose prepaid card
Issue: Unexpected or other fees

Complaint:
In or about the beginning of XXXX, 2022 I was sent a permanent Netspend prepaid card after which I activated it and loaded funds to my card in order to purchase cell phone services. After doing so, I reloaded funds and attempted to do the same thing but for reasons that were beyond my control, the process was not working properly so I terminated the process in order to attempt it again at a later date. After attempting to complete the process again it was in the process of working and then when I enter my card information it declined the transaction and stated that the funds were not available. Upon inquiring about what happened to the funds, I was informed that there was a purchase of XXXX $ for a transaction that I was neither aware of nor authorized. After making several attempts to contact the merchant, XXXX  XXXX, I was unsuccessful and therefore called Netspend to dispute the transaction. On or about XX/XX/2022, I did just that. The representative took the information and told me that he would have to cancel my card and he ordered me another one which would arrive in 7-10 business days. After completing the dispute he said that I would have access to the disputed funds, a temporary credit while they did the investigation and by XX/XX/XXXX, ( 10 business days ). There were no other instructions or information given to me at that time only that I would have an update by XX/XX/XXXX, and use of my funds. On XX/XX/XXXX, the card arrived and on XX/XX/XXXX, I called and activated the card only to find that not only were the funds never loaded but three more transactions had occurred leaving my account in the negative for {$9.00} ( + ) including a replacement fee for the card that they not only canceled but offered to send because they canceled it! I have had previous Netspend cards and not once have I been charged a replacement fee for a card that they canceled due to my having to dispute the unauthorized charges that were made by someone else! I am livid! The audacity of them to think that it is O K to steal my money. The card wasnt lost nor was it stolen. I simply disputed an unauthorized transaction that occurred on my account. There is no information in the Card Holder agreement that states this. Just after I activated the card is when I was informed that I needed to submit a statement explaining what happened with the card/ transaction activity that caused the unauthorized transaction leading me to file a dispute. This is not ethical business standards in fact I feel as though they deliberately and knowingly did so in order to allow more unauthorized transactions, which there are 3 including the replacement card fee, which was applied immediately after I activated the card. They refused to explain to me what the pending charges were and told me to go on line and then I could see the transactions there. How could there be any charges for a card that they canceled and stated was no longer valid? They are a bunch of crooks and I want everyone to know that. I am not going to stop until I get every penny back including the fees that were taken from my account. I loaded over XXXX $ and presently there is a negative XXXX $ along with other bogus transactions. Please take this seriously because this is blatant fraud!!!

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation