Consumer complaint received 2020-01-31
Company: Netspend Corporation
State: PA
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:
We went on a cruise ( XXXX XXXX ). At the beginning of the cruise, our PayPal prepaid debit card number was taken and we were told that a $ XXXX/day hold would be on our account until the end of our trip. At the end of the cruise, XXXX XXXX stated that they would tally up any charges that were accrued and whatever we did not spend, would be credited back to our account. XXXX XXXX credited our PayPal-prepaid debit card account back {$320.00}. Paypal-prepaid sent me a text stating that a refund of {$320.00} was credited to my account on XX/XX/2020. I went to use the card and the card declined. I contacted PayPal-Prepaid and they stated that there was a hold on my card because they saw where the account was credited {$320.00}, but they did not see where a transaction occurred to warrant the {$320.00} credit. I explained to them that the XXXX XXXX kept my card number and put a hold on the card for $ XXXX/day and that whatever we did not spend on the ship, would be credited back to our account. They stated that they needed a receipt. I contacted XXXX XXXX and asked them for a copy of the receipt. XXXX XXXX sent an itemized bill that detailed what was and was not spent on the cruise and included the amount that was credited back to me and which card it was credited to ( which was the same receipt we received from them ). I emailed the document to Paypal-Prepaid. They stated that it was not enough. They stated that they would need either a receipt or a letter of indemnity with a no harm clause before they would lift the restriction. During this process, I a customer rep at PayPal-Prepaid if I reloaded my account with more money, would I be able to at least access that money because I needed to pay bills. I was told that I would still have access to that money. I then loaded another {$700.00} onto the card ( {$500.00} & {$200.00}, which they stated they saw ) however, when I went to use the card, it declined again. I called Paypal-Prepaid back again, asking why I had no access to the money that I just loaded and was told that there is a restriction on my card not just for the {$320.00}, but for the entire balance on my card to protect me from fraudulent behavior. I contacted XXXX XXXX again, and told them that in order for them to release the credit, they needed a letter of indemnity with a no harm clause. They stated that they had never heard of such and asked if they would just decline the credit and XXXX XXXX would mail me a refund check. I contacted PayPal-Prepaid again, and stated that XXXX XXXX requested that the refund be rejected so that they could manually refund me. PayPal-Prepaid stated that XXXX XXXX would have to request the money back in writing. XXXX XXXX stated that if PayPal would not credit my account, then by law, they were obligated to send it back to them. PayPal-Prepaid refused to do so. XXXX XXXX sent a letter requesting that the hold be lifted off of my account and documented my credit card information, the amount that was held, as well as the amount that was credited back. PayPal still refuses to release my money and still refuses to resend the money back to the XXXX XXXX. Therefore, they are holding my money hostage and wont allow myself or the company that credited me the money access to it. This has been an ongoing back and forth situation since XX/XX/XXXX-XX/XX/XXXX. Still no access to my funds to pay my bills or have money to eat or live.

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