Consumer complaint received 2026-06-08 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Problem getting a card or closing an account — Trouble closing card
Company: Netspend Corporation
State: OK

Complaint narrative:
Net Spend told me identity verification is no longer an option, leaving me with no legal way to recover my own money. Net Spend is withholding over {$3900.00} in legitimate earned income, refuses to verify my identity, and requires an impossible condition to release my funds. Net Spend closed my prepaid account on XX/XX/2024 while it contained a positive balance of over {$7000.00}. They sent back a few transactions to two of the depositors which left the remaining positive balance at a little over {$3900.00}. I am a 1099 iXXXX XXXX XXXXXXXX. My deposits came from legitimate companies including XXXX XXXX and XXXX XXXX for work I did as XXXX XXXX XXXX working XXXX XXXXXXXX after Hurricane Helene. All deposits were legitimate, verified, and accepted by Net Spend before accepting transaction and posting into the account. No depositor is disputing the transactions, claimed fraud, or indicated the deposits were made in error. For months after the closure, Net Spend repeatedly told me that a refund check would be mailed within 710 business days. After months of delays, I was finally told that no refund check would be issued at all. Net Spend then stated that the only way to release my funds was for the original depositor to provide a hold harmless letter of indemnity. After which Net Spend would send the funds back to depositor. The depositor has confirmed they will not and can not provide such a letter. Today, Net Spend informed me that the identity and address documents I had previously submitted, within days of account closure and again later over the course of time, were not accepted, and that identity verification is no longer an option at all. This was the first I was informed that the documents were not accepted. They refused to tell me why the documents were rejected or what issue needed correction. Net Spend stated that verifying my identity and address was deemed no longer an option over a year ago. Which again today was the first time I was informed of this. Net spend has now eliminated every possible method for me to recover my own earned income. They will not issue a refund check They will not return the funds to me, the rightful, true, intended recipient of funds. They will not verify my identity or address in any way shape or form. They wont give specific reason as to why my documents were rejected. Most likely their automated system rejected my documents not a human. If the photo was slightly blurry, cropped, too dark, too light, or the address didnt match EXACTLY, the system rejects it. They never reviewed my documents manually. Net Spend rarely does manual review unless forced. The system flagged me, the documents didnt clear the flag, and no one escalated it. They require a depositor indemnity letter that the depositor can not legally provide They refuse to provide any legal or regulatory basis for withholding my funds. The funds remain untouched in the closed account, and Net Spend has provided no lawful justification for refusing to release them. I asked for it to be documented that the documents to verify my identity and address were submitted & rejected without explanation. I requested for a XXXX Department funds Release Review & escalation to XXXX due to funds being untouched still in the closed account and the fact that the deposits were legitimate and are undisputed. I am requesting CFPB assistance to : Require Net Spend/XXXX to release my funds directly to me, Provide a written explanation for why identity verification was denied, Confirm whether my funds are being held in a restricted or suspense account, Provide a lawful basis, if any, for withholding my money. Company : Net Spend / XXXX XXXX XXXX XXXX XXXX Issue : Funds withheld after involuntary account closure Requested Resolution : Immediate release of funds. I have done everything to comply, I have waited over a year and a half which I think to be more than enough time to have conducted a full investigation. Enough time that if there was to be any issue with transactions it would have surfaced by now. I even sent copies of my contract with XXXX XXXX as well as the copies of the 1099 pay form. There is no court order to freeze or hold funds. There is no justification or legal reason for Net Spends actions.

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