Consumer complaint received 2023-09-01
Company: Incomm Holdings Inc.
State: CA
Product: Prepaid card
Sub-product: General-purpose prepaid card
Issue: Trouble using the card
Sub-issue: Trouble getting information about the card

Complaint:
On XX/XX/2023 at XXXXXXXX XXXX I purchased a " Vanilla '' prepaid visa gift card at the XXXX XXXX located at this address : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX I loaded {$190.00} onto the card. I paid a {$5.00} activation fee. The total cost of the card was {$200.00}. 

When I opened the packaging, I noticed several numbers on the front of the card and the expiration date had been scrapped off. This is despite the fact that the packaging was perfectly and completely sealed ( I'm aware of scams regarding these types of cards and am very careful about selecting a card off the rack. ) The next day I returned to the same XXXX XXXX  location with my receipt and asked for a refund. They informed me that they do not issue refunds for prepaid cards as part of their policy and that my only recourse was to work directly with the issuer of the card. 

I called the number on the back of the card and listened to the automated options. None of the options had anything to do with damaged cards. The only option that sounded like it would actually get me a person on the phone to talk with was the " lost or stolen card '' option, so I selected that. Within XXXX seconds I was on the phone with someone named " XXXX. '' I told XXXX the situation and he asked for the serial number on the back of the card. I gave it to him. He confirmed to me that {$190.00} was still loaded onto the card and that he would place a hold on the card. He asked me to take a picture of my driver 's license, my receipt ( front and back ), and the card itself ( front and back ) and email it to : XXXX with the subject line of the email being my case ID, which he provided me with. He said they would look at the information in my email and make a determination within 30 days and that if they judged in my favor I would be sent a replacement card in the mail. 

I did some digging online and found out that this has been an increasingly common occurrence in the past year. At first, I thought it was a scam involving someone coming into the store and meddling with the cards. But when realized that despite the front numbers being scratched off, the funds were loaded onto the card ( as confirmed via the serial number on the back -- which was not scratched ) it didn't make sense that some third party would go to the lengths to do this. And even if they wanted to, the classic scam usually involves taping or gluing another serial number over the original serial number so that the customer unwittingly loads someone else 's card. Such was not the case here. The packaging on my card was not tampered with. My funds were not stolen. They are still on the card. What happened here was a manufacturer defect in the production of the card. But it wasn't simply a case of low ink, there is some sort of white scuff mark ( extra material ) that is over the card itself where the numbers should be. 

I don't know for sure, but it sure would be a great scam if the company were doing this intentionally with a certain number of cards. Most people don't immediately open the cards. They purchase them for a friend or family member well in advance of a birthday or other special occasion. Then the recipient may not open the card for weeks or months. By the time the recipient opens the packaging and discovers the scuffs and lack of numbers, they have no recourse. They can call the number on the back of the card, but they're required to have the receipt. The problem is that the vast majority of consumers will not have the receipt. Even if they were to reach out to the person who bought them the card -- if it's been weeks or months the chances are slim to none that that person ( the original purchaser ) will have the receipt. Based on the number of complaints I've seen in the past year that exactly mirror my experience, it would not surprise me if hundreds of thousands or millions of dollars go unclaimed ( because many people won't even bother ) or unrestored ( because of those who do -- many will not have the receipt. ) It's very difficult to ascribe intent, but there is definitely a pattern here. And Incomm ( the parent company of Vanilla ) stands to gain millions of dollars due to these " errors. '' I count myself lucky that I held on to the receipt. Many are not so lucky. And most probably don't even bother doing anything once they're told they need a receipt. This has now taken about an hour and a half of my time and I'm more organized and assertive than most. What if it were a teenager who got this as a gift? Or an old person? Or someone who doesn't speak English? How would they have jumped through all the hoops I did? Especially without a receipt?

Company response to consumer: Closed with explanation