Consumer complaint received 2021-03-23
Company: Netspend Corporation
State: NY
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem

Complaint:
On XX/XX/XXXX I changed my cellphone number and cellphone carrier. On XX/XX/XXXX I transfer {$2000.00} from my Chase Checking Account to my XXXX Pay account. 

On XX/XX/XXXX I attempted to make a purchase at XXXX XXXX using my XXXX Pay. This transaction declined so I called XXXX Pay and was informed the reason why the transaction declined was because there was a fraud alert and I needed to verify myself due to the phone number change. I submitted a copy of my social security card, my driver license and a copy of a credit card statement. The following day I received an email stating 1 out of the 3 proof of identities I submitted was rejected because it was considered a partial image. On that same day, I submitted a better image but did not hear from them after. I followed up a few days later and was told verbally by XXXX Pay representative that my account was closed due to Fraud Alert. I was not sent an email even though there was no change in my e-mail. I asked them how can I get my money back. I was told by the representative that a check can be requested on my behalf and I should expect that in 7-10 business days. On XX/XX/XXXX I called to follow-up on my check and was told that they can no longer issue the check because my account how now been closed. I again did not receive any email notification of this action on my account. The representatives were also not able to give me details of why it was closed except that there were suspicious and fraudulent activity. I was informed that was the only information they could give me. 
In order for me to get my money back, XXXX Pay requested I submit an indemnity letter from XXXX XXXX XXXX. I went to 3 local branches around my area and all bankers informed me they do no issue such letters to their customers. On XX/XX/XXXX my wife called XXXX Pay on my behalf and with my permission, asked for a supervisor and did a 3 way call with the XXXX Pay Supervisor and XXXX the banker I spoke with at XXXX ( XXXX XXXX XXXX XXXX NY XXXX ) that day. On that call, XXXX confirmed that they do not issue indemnity letters. During the same time I was able to get a representative at XXXX XXXX office that also confirmed this information. I was told that what they could issue in proof of our account. The XXXX Pay Supervisor did not engage with XXXX. There was no further conversation between XXXX and the XXXX Pay Supervisor. After disconnecting with XXXX, the supervisor informed us that she would escalate our supervisor and we should hear from them by XX/XX/XXXX. She even obtained my wife direct phone number. On XX/XX/XXXX we called XXXX Pay again to follow-up. We spoke to another supervisor ( Employee XXXX ) who stated the previous supervisor did not submit the escalation properly and so that is why we did not receive a call back. On XX/XX/XXXX we placed another call to XXXX Pay and got another supervisor. This supervisor refused to help us. He did not offer any solution except the indemnity letter that XXXX had confirmed they do not issue. He disconnected our call and when we tried to call back the call center was closed. 

XXXX Pay has received direct confirmation from XXXX that they do not issue indemnity letters but XXXX Pay is not giving me any other solution except to wait until they are forced to transfer our funds to the state. They are not even able to re open the account knowing that our funds are there and that they have already verified my identity.

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