Consumer complaint received 2025-11-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: Netspend Corporation
State: CA

Complaint narrative:
I, XXXX XXXX, submit this complaint against Netspend Corporation for unlawful, deceptive, and retaliatory practices that have resulted in financial harm, data exposure, and obstruction of access to federally protected funds. The conduct described below constitutes violations of Regulation E, the Social Security Act, the Consumer Financial Protection Act, the Federal Trade Commission Act Section 5, and the Americans with Disabilities Act. 

Factual Allegations On XX/XX/year>, I filed a dispute with Netspend supported by seventy-eight documented pieces of evidence, including merchant confirmations and ledgers showing duplicate and triplicate deductions for single orders. Despite this evidence, the dispute was initially denied. 

On XX/XX/year>, after escalation, Netspend issued a provisional credit in the amount of {$1600.00}. 

On XX/XX/year>, Netspend reversed the credit. Their written explanation stated there was no evidence of fraud, device compromise, or transaction errors. When I requested documentation of how this conclusion was reached, Netspend produced a single-page, two-sentence statement : We were unable to resolve the amount with the merchant. This contradicted their own prior communication and ignored the evidence I had submitted, including merchant ledgers and Netspend agent confirmations of fraudulent charges. 

Following the reversal, Netspend overdrafted my account by {$1700.00}. When Social Security deposits for myself and my son XXXX were posted, for XXXX and XXXX instead of reflecting XXXX, Netspend garnished XXXX percent of the funds without court order, without notice, and without legal justification. My account remained overdrawn by {$620.00}, and from XX/XX/year>, to the present, I have been denied access to federally protected benefits. After numerous attempts to resolve this. Netspend agents laughed hung up and continued to make their intent clear when asked to abide by banking regulations and laws in place for divine order. We have been dismissed harassed and target XXXX accounts all linked to XXXX house hold. I have medical needs as well as my sons special needs that are late and passed due. My credit score is going down. I got a pay notice or quit for overdue rent. The attrition strategy is XXXX that impacts my health in my old age. I began experiencing XXXX and had to visit the emergency room. 

Simultaneously, Netspend froze my wifes account ending in XXXX, containing {$7600.00}. Despite submission of bank regulation documents confirming her account was already verified, Netspend refused to issue a refund check or provide access to her funds. 

XXXX additional accounts were also impacted. XXXX was activated and then blocked immediately after a {$30.00} load. Another was refused activation entirely, with Netspend stating the refusal was because I had filed a complaint regarding the current account.

Resulting Harm As a direct result of Netspends actions, my household has suffered severe hardship : - Rent arrears of {$210.00} with a pay-or-quit notice. 
- XXXX arrears totaling {$1400.00}, including a PG & XXXX bill for {$1000.00} and a secondary bill for {$430.00}. 
- Unpaid medical needs for my husband totaling {$550.00}. 
- Unpaid special needs expenses for my son totaling {$400.00}. 
- Complete deprivation of food and basic necessities. 
- Denial of access to {$180.00} in prepaid cards purchased for emergency use. 

Netspend was fully aware of these circumstances yet continued to obstruct access to funds, reject valid documentation, and retaliate against my household.

Legal Violations Netspends conduct constitutes violations of : - Regulation E : unlawful denial of access to electronic funds and unauthorized reversal of dispute credits.

- Social Security Act : improper garnishment of SSA deposits without judicial authorization.

- Consumer Financial Protection Act : unfair, deceptive, and abusive acts or practices.

- FTC Act Section 5 : deceptive business practices and misrepresentation.

- Americans with Disabilities Act : disproportionate harm to XXXX household members. 

Relief Requested I respectfully request regulatory enforcement action requiring Netspend to : 1. Immediately release all withheld funds via expedited check delivery.

2. Reverse unjustified fees and overdraft assessments.

3. Provide a written accounting of all deductions, reversals, and account closures.

4. Confirm whether my personal data was unlawfully disclosed to third parties.

5. Implement corrective measures to ensure compliance with federal consumer protection laws. 

I am prepared to submit supporting documentation, including merchant confirmations, call logs, email correspondence, utility bills, identity verification records, and evidence of phishing attempts. 

Respectfully submitted, XXXX XXXX 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