Consumer complaint received 2018-07-06
Company: Netspend Corporation
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose prepaid card
Issue: Trouble using the card
Sub-issue: Trouble using the card to spend money in a store or online

Complaint:
I bought the card on XX/XX/2018. I gave the cashier at a grocery store {$3.00} for the card, plus {$360.00} to put on the card to pay my bills. 

Before I bought the card, the cashier told me the card would work right away. The package on the card does not say there will be any waiting period before the card will work. The package says that buyers need to give information : name, address, date of birth, and social security number, in order to activate the card. It also says buyers may need to show identification.

All other prepaid cards I have bought work immediately after I pay for the card and call an activation phone number - the whole process takes less than 5 minutes.

The cashier asked for my name, address, date of birth, social security number, and identification card. She also asked for my phone number.

After I gave her my money and the information, I called the activation number. I was then told that the card could not be activated until I send more documentation. Even though I had already shown my documents to the cashier when I bought the card, the documents would need to be scanned, faxed or photographed and emailed. Then, it would take 6 more business hours to process them. Since the business is run on Eastern Time, this meant that I could not activate my card in time to pay my bills. Also, I did not have the " recent utility bill '' requested. 

The package says to call the customer service number ( XXXX ) for refunds. I was told that a refund would take 10 days to process. ( There would then be time for the check to arrive in the mail, clear my bank account, and for me to buy a new card. ) That would mean that my bills would be about three weeks late. 

I immediately asked for my money back at the grocery store, but was told that " the money has already been given to XXXX XXXX and NetSpend. '' This is not true, the money was still in the cash register, since this was only abou

t 30 minutes after I made my purchase. I called the prepaid card phone number again and told the representative that I needed to activate the card right away because I needed to pay my bills that evening. She said the documents department was closed, so it my paperwork would not be processed until the next day - about 24 hours. She said she would email the documents department to see if anyone was working late and ask them to process my paperwork first. 

I photographed my passport, social security card, and a bank statement and a letter from my bank showing my name and address. I emailed these to the email address she had given me. 

The documents department did respond quickly, and even after their regular closing time. However, they said that the photo of my ID was not clear enough and that the bank statement I sent did not qualify as a document verifying my address. However, they said in the same email that a bank statement does qualify as a document verifying my address. 

I sent another copy of my ID. Then I called the prepaid card phone number again. I asked to speak to someone in the documents department about the bank statement. I was told that the department was closed and I should call back in 20 minutes to be connected.

When I called back, I asked to be connected to the documents department again. I was told that the representative had no way to connect me. I asked if they could relay another message to the documents department. I was told that the documents department " does not have a phone '' or email. Manager XXXX ( XXXX ) told me that he does not have a way to contact them. 

I know this is not true since the first representative was able to email them, and they have emailed and received emails from me. I also do not believe that departments within a legitimate business are not able to contact each other, or do not have phones. 

XXXX also told be that the package says that additional documents ( beyond those mentioned above ) may be required. However, he was not able to tell me where on the package this information is located. I am not able to find this information. The package does mention that additional identification may be required, but no where does it mention anything about bank statements or other documents.

I feel that this product is fraudulent for the following reasons : 1 ) The package does not tell consumers that it takes several hours to days to activate this card ( much longer than most other cards ).

2 ) The package does not tell consumers that devices such as computers, cameras, scanners, or fax machines may be needed to activate the card.

3 ) The packaging gives the impression that the card can be activated by phone or email by giving " information. '' In reality, copies of documents must be sent to the company. The package does not mention that documents such as utility bills or bank statements are needed. ( Many people do not have these because most transactions are processed on the Internet, so paper bills and statements are not sent. ) 4 ) The package does not mention that consumers need to provide a phone number.

5 ) The requirement to give full social security numbers, phone numbers, home addresses, names, and other personal information repeatedly to several different people when buying cards, calling for assistance, or activating cards may present a threat to identity security and personal safety. Once a consumer pays for the product, they can't use it until they give addition person information, copies of sensitive documents, and repeat personal information several times to different representatives.

6 ) The cashier gave me false information about the time it would take to activate the card.

7 ) The manager of the store gave me false information about no longer having the cash that I paid.

8 ) The manager at the credit card company lied to me about his ability to help me by contacting another department. He also gave false information about the information given on the packaging.

9 ) It is unclear with which company the consumer is dealing. The package has the names " XXXX XXXX '' and " netSpend '' on it. A phone number is listed, but it is not clear, to which company it is connected. This makes it difficult for consumers to file complaints. 

I am attaching the email stating that bank staments are an accepted document. In the email, they call the statement I sent a " mailer envelope. '' However, I sent my actual statement showing my name and address. I think part of the envelope is visible. I also sent a letter from my bank ( without envelope ). I am also attaching photos of the package. 

Buying this product has resulted in my bills being late this month. This means I will have to pay late fees of about {$50.00}. I will also need to buy another card if this one can't be activated, or pay a fee to this card to add more money for the late fees.

This has also resulting in my having to spend my entire evening and most of the night trying to activate the card or get my money back, and filing complaints. This means I will be very tired at work tomorow. I spend about 12 hours commuting and working each day. I don't have time for this. I work hard and do my job well, why can't " XXXX XXXX netSpend '' ( or whatever they actually call themselves ) do theirs?

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