Consumer complaint received 2021-05-15
Company: Netspend Corporation
State: NJ
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other transaction problem

Complaint:
Netspend unexpectedly without warning close my checking account after I had filed a dispute for a partial amount of a bill I was charged an extra day on a rental car from XXXX I was only supposed to be billed for a week and I was billed for eight days as opposed to seven. Been a customer with them since 2017 and they close my account without warning after I filed a dispute and they stated that it was a security issue and my account was suspected of fraud. However, they failed to state what the fraud was or suspected suspicious activity. As a result I immediately contacted my payroll department to tell them to please pay me by paper check and I was changing banks. Because not spend gave me no forewarning of the sudden closure the payroll was unable to cancel the direct deposit in enough time and net spend rejected my deposit. I was informed no paper checks are being given out due to Covid and people working remotely. Therefore I am out {$2100.00} which is the money I need to live. Netspend still has an active account which has a balance of {$56.00} in it but they rejected my pay my company is unwilling to re-issue the check at this time and it is over two weeks since I have been paid. I have no other money available to use to live at this time. I explain the situation but they said I have to wait at least six days in order to receive a refund back to the company. I have children that I am responsible for and do not have money to even go back to work for gas. They refused to send me any type of letter in writing so that I could submit it to my creditors and explain why all my bills are delayed. Is unacceptable it is illegal in my state we are paid twice per month I am a XXXX employee a XXXX and I have no access to my money. Filed a previous complain because they close my account when its still had a balance and took two weeks to send back my balance of {$300.00}. Hi Irs stimulus payment is also due to be deposited in this account and they are going to refuse it and I can not change the account information with the IRS therefore I am not going to be receiving my stimulus and I dont believe they are making any type of changes if the account does not except the money. They are not going to be mailing a check Or the third stimulus payment. As an emergency as I am unable to feed my children or go anywhere can somebody please contact me and have this escalated I filed a formal complaint about the unexpected closing and refusal to contact me or send me a letter in writing as to why they suddenly said there was fraud on my account after I filed a dispute amounting to {$52.00}. How can he have my account with a balance of {$52.00} but say that my accounts clothes so they cant except my paycheck I dont understand when I call there is a balance in my account yet they could not except my direct deposit. Not open another checking account because they have reported this one close by consumer due to suspicious activity. I did not engage in fraud I simply filed a partial dispute.

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