Consumer complaint received 2025-08-03 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: OH

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, OH XXXX XXXX XXXX Date : XX/XX/year> To : Netspend Corporation XXXX XXXX XXXX XXXX, TX XXXX Subject : Formal Complaint Regarding Privacy Violations and Withholding of Government Funds Dear Netspend Customer Support / Compliance Department, I am writing to file a formal complaint regarding what I believe to be serious violations of my privacy rights, improper handling of my personal information, and the unlawful withholding of funds totaling {$3800.00} on my Netspend account. 

To begin with, I was alarmed and disturbed by the excessive amount of personal information your company requested from mebeyond what is reasonable or lawful under the American Privacy Rights Act ( APRA ) and related federal data protection statutes. This included repeated demands for sensitive data such as my Social Security number, government-issued identification, and additional documentation that I have reason to believe was not handled securely. 

More troubling is the fact that this information appears to be processed and reviewed by outsourced customer service agents based overseas, many of whom may not be subject to the same legal safeguards required within the United States. If true, this would be a blatant violation of both APRA and various federal regulations concerning the handling of personally identifiable information ( PII ).

I must stress that U.S. citizens private financial and identity information should not be accessible to third parties outside the jurisdiction of U.S. law, especially when it concerns sensitive data like Social Security numbers and government benefits. If these allegations are confirmed, I believe your company may be in violation of federal privacy laws and consumer protection statutes, and I am prepared to escalate this matter to the Federal Trade Commission ( FTC ), Consumer Financial Protection Bureau ( CFPB ), and my congressional representatives, if necessary. 

In addition to these privacy concerns, Netspend has unlawfully denied access to {$3800.00} in government funds, which were deposited into my account. This withholding of my money without just cause or a clear, legal explanation is unacceptable. These funds must be returned to the appropriate creditor or disbursed to me immediately. 

I hereby demand the following actions from Netspend : Immediate release or return of the {$3800.00} that is currently being withheld without justification.

A written explanation and timeline detailing the chain of custody of my personal data and who currently has access to it.

A formal assurance that none of my sensitive data has been mishandled, sold, or shared with third-party entities without my consent. 

The name and location of any third-party or offshore customer service centers handling my personal information. 

Failure to respond to this matter within 10 business days from receipt of this letter will compel me to file formal complaints with the FTC, CFPB, XXXX XXXX XXXX and pursue legal action to protect my rights and secure the return of my funds. 

I expect a swift and satisfactory resolution. Please treat this matter with the urgency and seriousness it requires. 

Sincerely, XXXX XXXX

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