Consumer complaint received 2023-08-20 00:00:00
Product: Credit card or prepaid card — General-purpose prepaid card
Issue: Problem with a purchase or transfer — Card company isn't resolving a dispute about a purchase or transfer
Company: Netspend Corporation
State: DE

Complaint narrative:
I have a Netspend prepaid card via XXXX XXXX, XXXX. On XX/XX/XXXX, I received a text notification that a fraudulent charge was attempted at a XXXX in XXXX, NY on my account. I called Netspend and canceled my card and requested a new one. I was told by customer service that the charge was declined. On XX/XX/XXXX, I received my usual direct deposit. I attempted to make a purchase on XXXX and my card was declined. Upon calling Netspend, I was told that my account was frozen due to an attempt to charge {$1000.00} at a XXXX in XXXX, NY. I advised customer service that I did not attempt the {$1000.00} XXXX purchase, and subsequently canceled my new card that had just arrived. On XX/XX/XXXX, I called Netspend in the morning to have a new card ordered. Upon hanging up from the call, I did not have ANY ACTIVE CARDS on my Netspend account. I had a card on order that had not been received nor activated yet, and no other cards active. Several hours later, I received an additional text that attempts were made in XXXX, NY at a convenience store. I immediately called Netspend as I had NO ACTIVE CARDS on my account. I was told that someone hacked into my online banking account, created a VIRTUAL CARD, and used the card number to order online purchases totalling {$640.00} at XXXX XXXX XXXX XXXX in XXXX, NY. Netspend ALLOWED these charges to clear my account despite the history of fraud over the preceding two weeks and me calling to advise that I did not make those purchases. I filed claim XXXX XXXXXXXX on XX/XX/XXXX, in order to resolve the fraudulent charges and receive a provisional credit. I was told by Netspend that it would take 10 days. On XX/XX/2023 I logged onto my Netspend banking app and saw that my claim was CLOSED, with NO CREDIT ISSUED. Upon calling Netspend it was explained to me that I would not be receiving a credit for the money STOLEN from my account because " sufficient attempts to prevent or report fraud were not made ''. I have an email to Netspend documenting all of the fraud charges, amounts, dates and places of business these charges occurred. I live in XXXX  and have never been to XXXX, NY. Given the history of fraud on this account during the timeframe XXXX XXXX XXXX, XXXX  .... I do not understand HOW I am not eligible to receive THE MONEY THAT WAS STOLEN FROM ME back from NetspendXXXX XXXX I filed a complaint with the XXXX Attorney General 's Office, XXXX XXXX XXXX FDIC, as well as filed a report of identity theft with the FTC. There is absolutely NO EXCUSE for my payroll funds to NOT be returned to me. Netspend/XXXX XXXX XXXX. is an FDIC insured bank and it's unconscionable that I will not receive my hard-earned money back. I asked to speak to a Fraud Supervisor upon viewing the status of my claim being closed and was told that " per protocol '' I could not speak with anyone in fraud. The " protocol '' was for the customer service representative I was speaking with to send an email to the fraud analyst that handled my claim, and she would call me in ten business days.

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