Consumer complaint received 2018-12-22 00:00:00
Product: Credit card or prepaid card — General-purpose prepaid card
Issue: Trouble using the card — Trouble using the card to spend money in a store or online
Company: Netspend Corporation
State: VA

Complaint narrative:
NetSpend card purchased for {$100.00} cash, at XXXX, XXXX XXXX XXXX, XXXX  XXXX, VA XXXX, XXXX, store number XXXX acct # ( last four ) XXXX, XXXX # XXXX, approval # XXXX, auth code:XXXX, approval time XXXX. Purchase date XX/XX/2018 at XXXX. 

The first store the card was used at, declined the purchase. When in to XXXX where the NetSpend card was purchased. XXXX stated they did everything correctly and a cashier called NetSpend. NetSpend confirmed they received the {$100.00}, even though the card kept declining. The cashier at XXXX that helped me is named XXXX. I advise that I will contact NetSpend once I got home. I did, and this is what happened when I called them. : I purchased three NetSpend cards for my daughters as one of their XXXX gifts. The drama started when my XXXX-year-old tried to activate the card herself. They allowed her to do so, although on the back of the package it states you must be XXXX or older to do so. They took her date of birth, social security number, address and etc. 

Once she tried to use it, it kept declining. We called Netspend to find out what the problem was and was told my daughter needed to send them a copy of her birth certificate and social security number due to her being a minor and that her card was canceled. I asked who canceled my daughter card, I was given no answer, and after speaking to 3 customer service rep 's. A supervisor stated the card was canceled by a customer service rep. I thought only customers can do that? 

I advised by law when she stated her age, they should have asked for a parent or a legal guardian to continue activation of the card. I asked if they can transfer the funds ( {$100.00} ) to my netspend card ( I am her mother ). They took my NetSpend card info and my personal information and told me there will be a {$4.00} fee to transfer over the funds. I advised them that there should not be any fee since they should of not try to active this card with a minor in the first place. 

Once this was said i was placed on hold for 30 minutes. I waited, as i knew that they where just waiting for me to hang up and give up on this issue. But I work hard for my money and they where not going to just get rid of me. The young lady came back, she stated that now she can not transfer the {$100.00} to my NetSpend card either and that they will be mailing my daugther a check for the {$100.00} in 7 to 10 business days made out to her. 

There is a problem with this so-called solution. It was required to send in a copy of her birth certificate and social security for this to happen. 

Are they really this crazy?? I am never ever sending my family 's birth certificates or social security numbers to ANYONE. 

They have my {$100.00} ( cash ) today and want me to wait for 7 to 10 business days for a check?? I didn't pay them by check ... what are they doing with my cash that they admitted they received today?? 

The check is to be made out to my minor daughter who has no state ID at this time to cash the check, most places do not cash NetSpend checks, and what about the fee to cash the check??? My daughter would not be receiving the full {$100.00} I paid for. 

In all I spent 3 hours on the phone with XXXX to get them just to simply re-activate her card or transfer the funds to my card. I spoke with 2 customer service reps and 1 supervisor named XXXX, who stated there was nothing else they can do. I asked for someone other then her. XXXX placed me on hold for another 15 minutes and hung up on me. 

NetSpend is such a scam, horrible customer services and likes to hold on to people 's money. This ruining my daugthers XXXX and stopped her being allowed to purchase XXXX gifts for family members. Once all is said in done, I had to do alot of wiping my daugthers tears.

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