Consumer complaint received 2025-11-25 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Unexpected or other fees — 
Company: Netspend Corporation
State: CA

Complaint narrative:
I received a 'gift ' from a relative for my birthday in XXXX a Netspend `` XXXX XXXX XXXX ( Reloadable ) '' product. I was reluctant to use this card from then until present ( XXXX ) since it required a ridiculously inconvenient ( and privacy breaching ) process to even begin accessing the card and using the available balance ( i.e., the amount gifted to me ). Today, after nearly two years of reluctance, I contacted Netspend to begin " activating '' the card ( ridiculous, as it stands ). Because the internet portal did not work to " activate '' the card I was forced to contact their phone support and therefore provide multiple live representatives a tremendous amount of private and sensitive information in order to establish the account ( again, extremely ridiculous they require me to " open '' a bank account in order to access a gift ). This information that was asked of me repeatedly was extremely sensitive ( full name, SSN, DOB, address, phone number, card number, CVV ). Netspend coerced me into a decision that forced my disclosure to even inquire about the balance, such that there could have arose several security breaches along various threat vectors ( phishing attacks - phone call records/ compromised audio / web browser screen recorded ; scamming / skimming - credit inquires, connected bank details, fraudulent account charges, etc. ). It is disgusting that you allow these scam services to operate under the guise of convenience " debit '' cards and place them at registers next to actual gift cards, making them available to unsuspecting individuals ( for the purposes of gifting e.g., a birthday present ) - therefore, forcing consumers/ recipients like me to open unwanted accounts and consequently disclose many personal details that are otherwise ridiculous to request. I finally " gained access '' to the card after providing these details- only to be told by the representative that the original {$50.00} balance had now been made to be {$0.00}. This was due to " account inactivity '' fees that were accrued before I could even activate/ access/ use the card whatsoever. Therefore, I was coerced to provide all sensitive details through many different manipulative methods, only to have the money loaded on the account be entirely extorted from me / my account, leaving us robbed of the money intended to be gifted to me for my birthday. I was scammed by Netspend out of my balance, then they made it extremely difficult to withdraw my funds/ transfer to another bank without requesting additional compromising information ( through XXXX- all account details, all balance information, all transaction history, etc. ) .I am extremely disappointed with services like Netspend that force onto consumers ridiculous terms, stealing both their balances and their trust in the process. The rules governing " prepaid card '' service providers like Netspend need to be expanded to protect lawful customers like me from being forced to disclose details ( to open accounts that never should need to be opened- they say this is a requirement under the " US Patriot Act '' - embarrassing ), then to force consumers to forfeit the funds to their schemes of account fees, etc. ( this was obviously to me a scam ). I want my birthday money back and a way to permanently close and delete all my details I provided to Netspend in order to collect on my gift from my relative. Insane.

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