Consumer complaint received 2025-09-21 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Unexpected or other fees — 
Company: Netspend Corporation
State: CA

Complaint narrative:
Subject : URGENT EMERGENCY Threatened Reversal of SSA Survivors Benefits for XXXX Children To : CTBP / DFPI Dear CTBP, I am writing to urgently request your immediate intervention regarding XXXXNetspendXXXX handling of my childrens Social Security survivors benefits . These benefits are federally protected under 42 U.S.C. 407, yet XXXX is threatening to reverse a provisional credit from an account that receives nothing except these benefits. 

This is not a routine consumer dispute. This is about funds for minor children protected by law being put at risk through mishandling and attempted clawback. 



1. SSA Survivors Benefits at the Center of This Case My XXXX account is funded solely by SSA survivors benefits for my minor children. 
These benefits are protected against reversal, seizure, or offset under federal law. 
I have submitted to you copies of the Social Security award letters for each child as proof. 



2. What I Requested from XXXX XXXX that no provisional credit reversal would be taken from these SSA benefits. 
Escalation of my case to XXXX legal team and upper management. 
Full explanation of why prior cases were marked no error found for months, only for XXXX to suddenly admit errors. 
Transparency on inflated Dynamic Currency Conversion ( DCC ) fees that diverted my childrens benefits unlawfully. 

XXXX client advocate, XXXX XXXX, admitted she can not stop the reversal. They closed cases as no error found and then reversed themselves, admitting three errors totaling {$110.00}. This is contradictory and deeply suspicious. 



3. Mishandling and Suspicious Findings For months XXXX claimed no error, then suddenly admitted to Netspend errors totaling {$110.00}. 
If one case has errors, it is reasonable to suspect all the cases may have errors from XXXX onward. 
PayPals claim records show inflated amounts of $ XXXX and $ XXXX, which I never requested. I repeatedly told them on recorded calls that these amounts were incorrect. 
My actual estimated loss is closer to {$2000.00}, but XXXX never corrected these inflated figures. 
I was told twice by representatives that my account was closed and a check was being mailed to me, which was false and suspicious. 
I received at least one XXXX  email implying fault on my part. 
XXXX XXXX {$110.00} refund was a token gesture, not a resolution. I told her I did not want it I want my childrens benefits protected and the mishandled cases corrected. 



4. Catastrophic Harm if Reversal Proceeds My family has already terminated our XXXX residency and housing. 
We have plane tickets purchased for XX/XX/XXXX to relocate XXXX, tied to XXXX appointments we have waited a year for. 
If XXXX reverses the {$1700.00} provisional credit, my children will be left with only {$760.00} of their monthly benefits, making relocation impossible. 
This would cause irreparable harm : loss of housing, forfeiture of citizenship opportunity, and total disruption of our familys stability. 



5. Other Agencies Contacted Because this matter involves federally protected childrens benefits, I have already contacted : DFPI ( complaint already submitted with supporting documents ) SSA Office of Inspector General ( OIG ) ( multiple complaints submitted, though unable to attach all evidence online ) 6. Coordination with OIG and DFPI I am requesting CTBP to : Formally notify OIG on my behalf of PayPals ongoing threat to my childrens federally protected SSA survivors benefits. 
Coordinate with DFPI to ensure unified regulatory intervention, since DFPI already has some of my submitted evidence. 



7. Extreme Urgency XXXX has stated it will close my case on XX/XX/year> the very same day my childrens SSA survivors benefits are scheduled to be deposited. Multiple representatives, including XXXX XXXX, told me that if XXXX decides against me, they will immediately reverse those benefits. 

I specifically requested escalation to XXXX legal department and upper management, but XXXX XXXX admitted she could not stop the reversal and did not escalate as I requested. 

This means my childrens benefits are at imminent risk of unlawful seizure. 



8. Requested Action from CTBP 1. Immediately order XXXX to freeze any case closure or reversal of provisional credit until CTBPs investigation is complete. 
2. Recognize formally that SSA survivors benefits can not lawfully be seized or reversed under 42 U.S.C. 407. 
3. Investigate XXXX and Netspends mishandling of these cases, including inflated claim amounts and misuse of DCC fees. 
4. Notify OIG directly and share the evidence I have provided, since their intake system does not accept attachments. 
5. Coordinate with DFPI to ensure consistent enforcement. 
6. Confirm in writing that XXXX has been instructed not to act against these funds during CTBPs review. 



Closing This matter is urgent and time-sensitive. XXXX is on record as planning to reverse funds that belong exclusively to my children. If CTBP does not act quickly to freeze this action until your investigation is done, federally protected benefits will be seized in violation of law, with catastrophic and irreversible harm to my family. 

I respectfully request CTBP to use its authority under the California Consumer Financial Protection Law ( Cal. Fin. Code 90015 ) to intervene, freeze XXXX actions, and ensure these survivors benefits remain protected. 

Sincerely, XXXX XXXX Representative Payee for : XXXX XXXX XXXX XXXX XXXX XXXX XXXX : XXXX Email : 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