Consumer complaint received 10/30/2017 about Credit card or prepaid card (General-purpose prepaid card) with NETSPEND CORPORATION (TX).
Issue: Problem with overdraft
Sub-issue: Overdraft charges

Complaint: My XXXX XXXX Netspend prepaid card went into over draft in the amount of - {$53.00} on XX/XX/XXXX. However, onXX/XX/XXXX while working as a FEMA Government contractor, XXXX XXXX/Netspend allowed an unauthorized overdraft in the amount of {$1100.00} to be processed on my PREPAID card even though the funds request was unsupported and funds were unavailable. This unauthorized allowance caused a cumulative negative balance of - {$1100.00}. 

OnXX/XX/XXXX, I rented a economy vehicle from XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX  XXXX ) at a rate of {$180.00} per week ( see attached contract ). XXXX XXXX XXXX solicits their rental services with the option of placing a credit card on their rentals or cash only. I explained to the Manager ( XXXX XXXX ) my employment as a FEMA Contractor required me to be away and I placed a {$750.00} cash deposit down for the rental ( see attached receipts ). The manager ( XXXX XXXX ) asked me to leave a card on file with him and he made a copy of my prepaid card. On XX/XX/XXXX I made an additional cash deposit of {$200.00} and another cash deposit of {$300.00} onXX/XX/XXXX. I returned the vehicle on XX/XX/XXXX and was livid when a saw a charge of {$1100.00} on my Prepaid card from XXXX XXXX XXXX in addition to the XXXX  cash deposit. I immediately contacted XXXX XXXX XXXX  and when my phone calls were refused I contacted XXXX XXXX Netspend to dispute the transaction. 

I closed the prepaid account and was told by the XXXX XXXX Netspend representative that a provisional credit would be issued to my account if I sent an email with my dispute documents and the following DISPUTE CLAIM NO. and REFERENCE NO. ( XXXX XXXX. XXXX & XXXX XXXX. XXXX ) to their dispute department within 10 days. I sent the email the same day, however, have yet to see a refund or provisional credit ( see attachment ). On XX/XX/XXXX, I received notification from mail track that the email sent to : XXXXXXXXXXXX HAS NOT BEEN OPENED ( see attachment ) XXXX XXXX legal terms and conditions ( B ) How the Optional Overdraft Protection Service ( the Service ) Works : Specifically page 15 ( see attached ), states ( see XXXX XXXX Terms and Agreement of Service attachment ), you generally do NOT have the right to make transactions or incur fees in the amounts EXCEEDING the available balance of your card account. However, as a non-contractual courtesy, the Service is available on your Card Account if you elect to participate ( opt in ) and you have met each of the activation and eligibility requirements described below. If you opt in, the Primary Cardholder or any Secondary Cardholder may make transactions that exceed the balance of your Card Account and may incur fees on the Card Account, subject to the limitations herein. 

My card account did not meet the terms and conditions to remain participatory in the over draft protection program or remain active under XXXX XXXX Netspend guidelines, however, XXXX XXXX Netspend violated the terms and agreements of its own legal contract by allowing my account to remain active contrary to the violation of its own policy. ( see below ) XXXX XXXX legal terms and conditions ( A ) Activation and Eligibility, specifically page 16 ( see attached ) : To activate the Service on your Card Account you must take the following steps : After activation of the Service, you must continue to receive XXXX deposits totaling {$200.00} every thirty ( 30 ) days. If you fail to receive XXXX Deposits totaling at least {$200.00} every thirty ( 30 ) days after activation or your account has a negative balance for more than ( 30 ) days your card will be immediately deactivated. 

Overdraft protection was activated on my accountXX/XX/XXXX. Subsequently,XX/XX/XXXX, XXXX, XXXX and XXXX, my Card Account exhibited ZERO XXXX Deposits and held a negative balance of - {$80.00} for 90 days ( see attached statements coveringXX/XX/XXXX thruXX/XX/XXXX ). In lieu of the obvious cause for deactivation XXXX XXXX Netspend allowed the Card Account to remain active, thereby violating its own contractual agreement which states, IF YOU FAIL TO RECEIVE XXXX DEPOSITS TOTALING AT LEAST {$200.00} EVERY ( 30 ) DAYS AFTER ACTIVATION OR YOUR ACCOUNT HAS A NEGATIVE BALANCE FOR MORE THAN ( 30 ) DAYS YOUR CARD WILL IMMEDIATELY BE DEACTIVATED. 

XXXX XXXX legal terms and conditions ( A ) Activation and Eligibility, specifically page 16 state : If your Card Account has a negative balance on any one occasion for sixty ( 60 ) days, the Service will be permanently deactivated. 

Per my attached Card Account statements my Card Account evidenced a negative balance fromXX/XX/XXXX thruXX/XX/XXXX, which exceeded XXXX XXXX Net Spends ( 60 ) day deactivation activation and eligibility requirements by 30 days Furthermore, XXXX XXXX Netspend is aware the Cardholders previous Card statements do not evidence individual transactions of more than {$500.00}. However, XXXX XXXX Netspend remained complicit in the allowance of an uncharacteristic and unauthorized transaction which exceeded characteristic trends by more than 200 % ( percent ) thereby ignoring purchasing trends associated with the account in question, resulting in a failure to adequately maintain the security of the Cardholder. 

XXXX XXXX Netspends allowance of an unauthorized and uncharacteristic transaction and its failure to abide by its own terms and agreements of service constitute a 'breach ' of the agreement.

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