Consumer complaint received 2025-01-17 00:00:00
Product: 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: MI

Complaint narrative:
XX/XX/XXXX XXXX Re : Evidence to support disputed charge Dear XXXX XXXX Thank you for contacting NetSpend All-Access! 

I understand you have inquiries about your dispute. 

When investigating dispute claims reported by our cardholders we adhere to the processes and timeframes as defined in both Regulation E and in Netspend All-Access cardholder agreements that customers receive when opening an account. 

Your claim XXXX is currently still under investigation. According to Regulation E and your Cardholder Agreement, we will determine whether an error occurred within 10 business days. If we need more time, we may issue a provisional, or temporary, credit so that you have use of your funds during the investigation. Your dispute claim number status will be updated on XX/XX/XXXX. 

In order to be eligible for provisional credit, as outlined in your cardholder agreement, please send us a written notice containing the following information. You may email it directly to XXXX and be sure to include reference number XXXX, in the subject line. 

Written Notice Info The posting date, merchant name and amount for each transaction Your detailed reason ( s ) for disputing the transactions.

If there is anything else we can do to assist you, please do not hesitate to contact us via email or call Customer Service hotline. 

Have a great day! 

XXXX Customer Service Agent XX/XX/XXXX XXXX Re : Evidence to support disputed charge Dear XXXX XXXX Thank you for contacting NetSpend All-Access! 

I understand you have inquiries about your dispute XXXX. 

When investigating dispute claims reported by our cardholders we adhere to the processes and timeframes as defined in both Regulation E and in NetSpend All-Access cardholder agreements that customers receive when opening an account. 

Our records show that your dispute claim was updated on XX/XX/XXXX. Unfortunately a provisional credit was not applied because error was not reported timely. We assure you we will continue to do what we can to retrieve or reimburse your funds. You can expect an update by XX/XX/XXXX. The results of the dispute will be sent to you in writing within XXXX business days of completing the claim process. 

I apologize for any inconvenience this may have cause.

If there is anything else we can do to assist you, please do not hesitate to contact us via email or call Customer Service hotline. 

Thank you. 

XXXX Customer Service XXXX XX/XX/XXXX XXXX Re : Evidence to support disputed charge Dear XXXX XXXX Thank you for contacting Netspend All-Access! 

I understand that you have concerns regarding the timeframe provided for your dispute claim number XXXX. 

When we notify a merchant of your dispute, we are required to provide them with enough time to respond to your claim as defined in both Regulation E and in Netspend cardholder agreement. Typically, this timeframe can take between 45-90 days. In your case, we show the deadline is XX/XX/XXXX. If the merchant does not provide supporting documentation by this date, we will recover the money back and refund your account the following day. 

Claim XXXX Provisional credit not issued because error was not reported timely. 

We can assure you that we will do everything we can to assist you with getting the funds returned. I apologize again for any inconvenience this has caused. If you have additional questions or concerns, please do not hesitate to contact our Customer Service at the phone number below. 

Have a great day! 

XXXX Customer Service Agent XX/XX/XXXX XXXX Re : Evidence to support disputed charge Dear XXXX XXXX Thank you for contacting Netspend All-Access! 

I understand that you have some concerns regarding the update of your claim. 

I have reviewed your account and your claim is still under investigation. The provisional credit was not issued because the error was not reported in a timely manner. Your next status update concerning our investigation will be available on XX/XX/XXXX with the claim number XXXX in the amount of {$1000.00}. 

Please be advised that a temporary or provisional credit is not guaranteed as it is based on the initial investigation. We can assure you that we will do everything we can to assist you with getting the funds returned. 

I apologize for any inconvenience this may cause. 

Have a great day! 

Lovely Customer Service Agent XX/XX/XXXX XXXX Re : Evidence to support disputed charge Dear XXXX XXXX Thank you for contacting Netspend All-Access! 

I understand that you have some concerns regarding the update of your claim. 

I have reviewed your account and your claim is still under investigation. The provisional credit was not issued because the error was not reported in a timely manner. Your next status update concerning our investigation will be available on XX/XX/XXXX with the claim number XXXX in the amount of {$1000.00}. 

Please be advised that a temporary or provisional credit is not guaranteed as it is based on the initial investigation. We can assure you that we will do everything we can to assist you with getting the funds returned. 

I apologize for any inconvenience this may cause. 

Have a great day! 

XXXX Customer Service Agent Messages I sent to NetSpend XX/XX/XXXX XXXX Re : Evidence to support disputed charge Im aware of the requirements as mandated by the XXXX, the Federal Trade Commission FTC took action against NetSpend for failing to provide provisional credits for disputed transactions. It has been 10 days, today is the XXXX of XX/XX/XXXX, and no updates or provisional credit has been issued. NetSpend is required by law to issue these provisional credits and violations by NetSpend for failing to do so has has happened plenty of times. 

Please proceed with a hearing to the guidelines imposed and enforced by the FTC, ASAP or I will be left with no other options ten to.

fe complaints with the FTC and CFPB before litigating this matter in federal court of need be. 

Thank you in advance for your cooperation I look forward to hearing back from you as XX/XX/XXXX XXXX Re : Evidence to support disputed charge Heres a concise version of the email within XXXX characters : -- - **Subject : ** Formal Demand for Provisional Credit : Dispute Claim # XXXX Dear XXXX, Thank you for your response. I am writing to demand compliance with your obligations under Regulation E the NetSpend All-Access Agreement and FTC guidelines XXXX regarding unauthorized transactions. 

Provisional Credit Requirement Regulation E 1005.11 mandates that provisional credit must be issued within 10 business days if an investigation can not be completed. Your decision to deny provisional credit based on timeliness is unsupported, as many disputed transactions fall within the 60-day reporting window. Additionally, the FTC guidelines require timely consumer dispute resolutions, and failure to comply may constitute unfair practices under the FTC XXXX XXXX. XXXX : ** XXXX- {$6.00} XXXX. XXXX : ** XXXX- {$15.00} XXXX. XXXX : ** XXXX- {$35.00} XXXX. XXXX : ** XXXX- {$200.00} XXXX. XXXX : ** XXXX- {$29.00} XXXX. XXXX : ** XXXX- {$20.00} XXXX. XXXX : ** XXXXXXXX XXXX XXXX - {$25.00} XXXX. XXXX : ** XXXX- {$42.00} XXXX. XXXX : ** XXXX XXXX - {$26.00} XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX {$20.00} Action Required I demand : 1. Immediate provisional creditfor the above transactions.

2. A written acknowledgment of this email and supporting documentation.

Failure to comply will result in escalation to the **CFPB**, **FTC**, and other regulatory bodies. 

Sincerely, XXXX XXXX XX/XX/XXXX XXXX Re : Evidence to support disputed charge Thank you for your response. I am writing to demand compliance with your obligations under Regulation E, the NetSpend All-Access Agreement, and FTC guidelines XXXX regarding unauthorized transactions. 
Provisional Credit Requirement Regulation E 1005.11 mandates that provisional credit must be issued within 10 business days if an investigation can not be completed. Your decision to deny provisional credit based on timeliness is unsupported, as many disputed transactions fall within the 60-day reporting window. Additionally, the FTC guidelines require timely consumer dispute resolutions, and failure to comply may constitute unfair practices under the FTC Act. If NetSpend continues to deny a rifle claim and not adhere to the FTC guidelines or the language used in regulation E or netspends on dispute resolution policies in the next message I will be writing will be to the FTC and the consumer financial protection bureau and I will litigate this matter myself after that Im not asking for anything that isnt mine or anything that wasnt already pre-agreed to as per the agreement works both ways. Asking that spend hold up there into the bargain should not be this hard and I would strongly advise you from testing my resolve that being said or to a prop resolution to this matter within the hour thank you Re : Evidence to support disputed charge Your response regarding my dispute claim # XXXX is unacceptable and demonstrates a failure to comply with Regulation E and the FTC guidelines of XXXX. Your claim that provisional credit was not issued because one charge was untimely reported is both inaccurate and misleading.

Independent Review of Transactions : Regulation E mandates that each disputed charge be investigated individually. A single untimely charge does not disqualify other timely-reported charges from provisional credit eligibility.

Provisional Credit Requirement : For all charges reported within the 60-day window, provisional credit must be issued if the investigation exceeds 10 business days. Refusal to do so is a clear violation of federal law.

Misrepresentation of Obligations : Your response fails to address why timely-reported transactions were denied provisional credit, despite clear evidence, including a XXXX security notification confirming my account was compromised. This undermines consumer trust and constitutes an unfair practice under the FTC Act.

Demand for Immediate Action : Issue provisional credit for all transactions reported within the 60-day timeframe immediately.

Provide a written explanation detailing how your actions comply with Regulation E.

Confirm that you are treating each charge independently as required by law. 
Failure to address this issue will result in escalation to the Consumer Financial Protection Bureau CFPB and Federal Trade Commission FTC. I expect immediate corrective TODAY Sincerely, XXXX XXXX XX/XX/XXXX XXXX Re : Evidence to support disputed charge The following charges fell well within the 60 day period to be considered timely per regulation e from the Federal trade commission and their guidelines. XX/XX/XXXX : Signature purchase from XXXX - {$6.00} XX/XX/XXXX : Signature purchase from XXXX - {$15.00} XX/XX/XXXX : Signature purchase from XXXX - {$3.00} XX/XX/XXXX : Signature purchase from XXXX - {$35.00} XX/XX/XXXX : Signature purchase from XXXX - {$200.00} XX/XX/XXXX : Signature purchase from XXXX - {$120.00} XX/XX/XXXX : Signature purchase from XXXX - {$8.00} XX/XX/XXXX : Signature purchase from XXXX - {$29.00} XX/XX/XXXX : Signature purchase from XXXX XXXX {$20.00} XX/XX/XXXX : XXXX purchase from XXXX XXXX XXXX XXXX {$25.00} Additionally, the following PIN transactions were charged at incorrect amounts : XX/XX/XXXX : PIN purchase fro XX/XX/XXXX XXXX Re : Evidence to support disputed charge In order to comply with the FTC guidelines the provisional credit is required. Theres 21 charges in 2 separate disputes. Just because 1 charge in 1 of the disputes that wasnt on 60 time period to be timely that one charge in NO WAY INVALIDATES THE OTHER 20 CHARGES THAT FELL WELL WITHIN THE 60 DAY TIMEFRAME. Youre purposely and illegal restricting my access to my funds and without any regard or respect for regulation E and several or your own statements that youre knowingly violating the law. Show me Im writing the specific charges that werent deemed timely reported and the language used in the regulation, or policy to substantiate your claim and details precisely how this makes me not eligible for a provisional credit. You been sued before this same exact fraudulent, misleading and deceptive practice.

As a repeated offender of this same law, the judge will not kind with the judgement against such a brazen criminal practices and will impose severe punitive fines sufficient enough to end this criminal, fraudulent pattern and practice. Im am not wasting anymore of my time trying to enforce the laws your breaking and will have a federal judge do that. Last chance to comply with the law and issue the credit or resolve the Dear XXXX, Thank you for your response regarding the disputed charges on my account. I am submitting the required information and additional evidence to support my claim, consistent with Regulation E and the NetSpend All-Access Cardholder Agreement. 

Disputed Transactions The following transactions were unauthorized and resulted from a compromised account, as detailed in the attached XXXX security notice : XX/XX/XXXX : Signature purchase from XXXX - {$6.00} XX/XX/XXXX : Signature purchase from XXXX - {$15.00} XX/XX/XXXX : Signature purchase from XXXX - {$3.00} XX/XX/XXXX : Signature purchase from XXXX - {$35.00} XX/XX/XXXX : Signature purchase from XXXX - {$200.00} XX/XX/XXXX : Signature purchase from XXXX - {$120.00} XX/XX/XXXX : Signature purchase from XXXX - {$8.00} XX/XX/XXXX : Signature purchase from XXXX - {$29.00} XX/XX/XXXX : XXXX purchase from XXXX  - {$20.00} XX/XX/XXXX : Signature purchase from XXXX XXXX XXXX - {$25.00} Additionally, the following PIN transactions were charged at incorrect amounts : XX/XX/XXXX : PIN purchase from XXXX - {$100.00} Incorrect amount charged ; does not match the authorized transaction. 
XX/XX/XXXX : PIN purchase from XXXX XXXX XXXX - {$38.00} Incorrect amount charged ; does not match the authorized transaction. 
Supporting Evidence Attached, you will find the following document to substantiate my claim : XXXX Security Notification : Confirming my account credentials were compromised, leading to unauthorized access. 
Under Regulation E, you are obligated to : Investigate reported errors within 10 business days or provisionally credit my account for disputed amounts during the investigation if further time is required.

Correct errors promptly upon determining that unauthorized activity occurred. 
As highlighted in the NetSpend User Agreement : Unauthorized electronic funds transfers must be reported and resolved as per the terms outlined in the dispute resolution policies. 
A compromised account, as confirmed by XXXX, places responsibility on the financial institution to protect the consumer from unauthorized access to their funds. 
Request for Provisional Credit Given the timeline provided in your correspondence, the investigation may extend beyond 10 business days. As per Regulation E and the NetSpend User Agreement, I formally request provisional credit for the disputed charges while the investigation is ongoing. 

Additional Information Please provide a written acknowledgment confirming receipt of this email and the attached documentation. Additionally, I request updates on the progress of the investigation and clarification on the expected resolution timeline. 

Thank you for addressing this matter promptly. Should you require further information, do not hesitate to contact me via email or phone. 

Sincerely, XXXX XXXX Subject : Dispute Claim Confirmation Account XXXX Claim Date : XX/XX/XXXX Claim Number : XXXX and XXXX Claim Amount : {$730.00} and {$330.00} Dear Valued Cardholder, Thank you for reporting this transaction error. We have opened a dispute claim for you. Your claim number is XXXX and XXXX and should be used for future reference. 

If you have reported unauthorized transactions, your card will be blocked to prevent additional unauthorized transactions on your account, and a new card will be shipped to you, at no charge, within 10 business days.

We will attempt to complete the investigation within ten ( 10 ) business days ( twenty ( 20 ) business days for new accounts ). If we are unable to complete our investigation within 10/20 business days, we may issue a provisional credit at that time and complete the investigation within forty-five ( 45 ) calendar days ( ninety ( 90 ) calendar days for errors involving a point of sale or foreign transaction, or new account ) from your initial Claim Date listed above.

The results of the investigation will be sent to you in writing within 3 business days of completing our investigation. 

Thank you for your patience as we investigate your claim. 

If you have additional questions, please contact the Netspend Customer Service Department at XXXX during normal business hours. 

Sincerely, Netspend Dispute Resolution Department XXXX XXXX XXXX XXXX, TX XXXX Show quoted text Confidentiality Notice! This electronic transmission and any attached documents or other writings are confidential and are for the sole use of the intended recipient ( s ) identified above. This message may contain information that is privileged, confidential or otherwise protected from disclosure under applicable law. If the receiver of this information is not the intended recipient, or the employee, or agent responsible for delivering the information to the intended recipient, you are hereby notified that any use, reading, dissemination, distribution, copying or storage of this information is strictly prohibited. If you have received this information in error, please notify the sender by return email and delete the electronic transmission, including all attachments from your system. 



Netspend Dear XXXX, This email is to confirm that your Netspend Debit Account Card ending in XXXX has been blocked because it was reported stolen. Reporting a stolen Card as soon as possible helps to protect your money.

We recommend the following steps : 1. Check your address and order a replacement Card here > Log in to your Account and go to My Account then My Profile to verify or update your address. 
Go to My Account then My Cards and Order Cards to order a new Card.

2. Inform any billers using the Card number ending in XXXX for recurring payments that it will no longer work. 

Any replacement Card will have a different Card number for the security of the Account.

Direct Deposits and Anytime Alerts settings ( if applicable ) will not be impacted.

3. Review your transaction history to make sure that no unauthorized transactions have been made. 

If you find unauthorized transactions, you must notify us at once. 
To report an unauthorized transaction, you can : Visit your Online Account Center and file a dispute here > Call us at XXXX Write to us at XXXX XXXX XXXX, XXXX, TX XXXX Sincerely, Your Netspend Debit Team This message was sent to you because of changes, updates, or transactional activity on your Netspend Debit Account XXXX We are required to send you such notifications regardless of your subscription status for your protection. Please do not reply to this message. 

Netspend Debit | Privacy Policy The Netspend debit account is a demand deposit account established by XXXX, XXXX, Member FDIC pursuant to license by XXXX XXXX XXXX. 

Card may be used everywhere XXXX debit cards are accepted. 

XXXX XXXX XXXX XXXX XXXX XXXX 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, XXXX, TX XXXX XXXX Claim Number : XXXX Claim Date : XX/XX/XXXX Claim Amount : {$330.00} Thank you for reporting this transaction error. We have opened a dispute claim for you and have blocked the card used to perform the disputed transaction ( s ) ; this will protect the remaining fu

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