Consumer complaint received 2021-10-13
Company: Netspend Corporation
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose prepaid card
Issue: Problem with a purchase or transfer
Sub-issue: Card company isn't resolving a dispute about a purchase or transfer

Complaint:
On XX/XX/XXXX a total of three transactions were placed using my Netspend account.The first transaction was a transfer of {$4600.00} from my savings account to my checkings account.From there XXXX dollars was transferred to an unknown account.The next transactions was for {$3200.00} placed at a long distance moving company based in Texas.The next transaction was for {$500.00} for a XXXX  XXXX office based in New York.I immediately called Netspend to figure out what was going on but I ended up have to call over 20 times because they said that my account information didnt match anything in their system.The person had changed all my information to prevent me from gaining access to my account.Finally I got through to a customer service agent who took his time to figure out what was going on.He asked me if I had made those transactions and I told him that I had not.He asked for my personal information to which I gave it to him and he informed me that the person had changed all of my information.He asked if I wanted to dispute the transactions and I told him yes.He informed me that I would have to wait until the transaction were no longer pending in order to do so.I did as he told me and waited for them to no longer be pending and filed my dispute.He told me that in between that time that I could be issued a provisional credit but if the investigation came back as no error I would have to pay back the provisional credit.They issued a provisional credit for one of the transactions but continued to investigate the others.I called each month for an update and each time they told me that the investigation was still in process.On XX/XX/2021 I had received a notification that a transaction had been placed for {$330.00} for XXXX in XXXX Florida.That was for the exact amount that I had left in my checkings account.I immediately called Netspend to inform them that another fraudulent transaction had been placed using a virtual card made through my account.I filed another dispute and asked them why my account was not being secured to prevent this from happening.They told me that whoever the person was they had my information and was able to continue to gain access.The customer service agent told me the only thing I could do was change my information each week and quickly withdraw my money before it happens again.I explained to them that thats not a proper solution to for this problem.They informed me that my account would be safer that was.I did as the agent told me but instead I chose to just not have direct deposits sent to that account until the issue was resolved.Today is XX/XX/2021 which is they day that was supposed to be a resolution for the dispute.I contacted Netspend customer service and asked for the update and they informed me that they found no error for the the XXXX dollar transaction and the XXXX dollar transaction and that the claim would be closed and no money would be issued.I had tried to explain that their was indeed and error and my count had been used for fraudulent transactions.They informed me that the merchant said no error was done in those transactions.I explained to Netspend customer service that they were negligent in protecting my account even with clear evidence that it was being infiltrated and that they refuse to take accountability for the flaw in their system that allows virtual cards to be created and used through customers accounts.After explaining this I was once again told that nothing could be done.All my savings have been taken for me and I have nothing left to take care of my child and household.

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