Consumer complaint received 2018-04-19 00:00:00
Product: Credit card or prepaid card — General-purpose prepaid card
Issue: Trouble using the card — Problem with a check written from your prepaid card account
Company: Netspend Corporation
State: FL

Complaint narrative:
Netspend never sent me a check like they told the CFPB they would nor the card like I will attach their emails here. And then to accuse it's ME of fraud when the fraud is on their side and what Netspend did to me they did to THOUSANDS of other consumers where they denied access to their funds and the FTC sued Netspend in XX/XX/XXXX FTC says NetSpend decked consumers with deceptive claims for prepaid debit cards By : XXXX XXXX | XX/XX/XXXX XXXX SHARE THIS PAGE XXXX XXXX XXXX TAGS : Bureau of Consumer Protection Consumer Protection Advertising and Marketing Advertising and Marketing Basics Credit and Finance Credit and Loans Payments and Billing From the perspective of consumers, the whole purpose of prepaid debit cards their reason for living, if you will is to give consumers immediate access to their money. Those cards are an especially important financial lifeline for people who dont have traditional bank accounts. In pitching its reloadable prepaid cards, NetSpend Corporation promised consumers immediate access to their funds with no holds, no waiting. But according to an FTC complaint, the defendants business practices rendered that claim and other representations deceptive. 

Immediate access? Not so fast, alleges the FTC. NetSpends ads were replete with claims like No Waiting! and Use your card immediately. But the FTC says many consumers experienced delays in accessing their funds both in the initial activation process and later. For example, despite the companys use it today claim, consumers have to go through an identity verification process required by law before the prepaid debit card can be activated a process with requirements many people have difficulty satisfying. 

The upshot? People who loaded funds onto NetSpend cards often had to wait and wait and wait to access their own hard-earned money. The FTC says those delays resulted in severe financial hardship to consumers, including evictions, repossessed cars, and late fees on bills. 

The complaint also alleges that many customers who closed their accounts and asked for refunds had to wait several weeks to get their money back. In other cases, NetSpend imposed fees that depleted the funds from cards after consumers were unable to activate them. 

The complaint takes on other instances in which NetSpends business practices were at odds with its marketing claims. For example, the lawsuit challenges as misleading NetSpends representation that consumers are guaranteed approval for a card. The FTC also alleges that NetSpend said it would grant provisional credit when consumers dispute charges on their cards, but often failed to live up to that promise. 

The lawsuit was filed in federal court in XXXX. If you work in the financial services sector or have clients interested in alternative payment methods, this is a case to watch. 

I provided Netspend with my XXXX, bank statement, SS card Dr licence birth certificate, legal name change. It is NOT fraud on my part I am contacting a lawyer and this is ridiculous to be accused of fraud when I have provided ALL the documentation to prove my idenity.. Netspend lied to CFPB they said they sent me a check no they haven't. They sent me an email that they sent me my permanent card when I called them about it they told me yes they sent it to me but then cancelled i so I can't use it or access the funds I put on the card. The first time I contacted Netspend they asked me if my address was the same as on my driver 's license I aid no and gave them the correct address they TOTALLY disregarded that and after I filed with the CFPB and spoke with XXXX  at Netspend she said well the address we have is not what is on your bank statement or XXXX the rep never changed it.here we go again the SECOND attempt for them to enter my correct address XXXX  said the system would not allow her and was blocking her and SHE put restrictions on my account. I'm telling you I NEVER got the card they emailed me about nor the check from them they told the CFPB they sent me.

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