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This settlement is closed!
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The U.S. Federal Trade Commission has secured a $53 million settlement in an enforcement action against NetSpend Corporation. The settlement will provide refunds to persons affected by NetSpend’s alleged mishandling of customer funds.
The FTC accused NetSpend of deceiving consumers about the accessibility of funds deposited in NetSpend prepaid debit card accounts. NetSpend allegedly promoted its reloadable prepaid debit cards as a way to store and immediately access funds.
But customers of NetSpend were reportedly not able to access their money as promised. NetSpend allegedly delayed access to funds either by denying or delaying activation of the card or by blocking the customer from using the card. Customers who closed their accounts and asked for refunds did not receive their money for several weeks.
For some customers, this delay in access to funds resulted in severe financial hardships including evictions, repossessions, and late fees on bills, the FTC says.
Under terms of the NetSpend settlement, NetSpend has agreed to create a settlement fund worth $53 million, to be used to reimburse customers who hold covered NetSpend accounts.
The settlement agreement also bars NetSpend from making misrepresentations about the accessibility of customers’ funds.
UPDATE: September 2018, the FTC announced that it will send out another $10 million to consumers from a NetSpend prepaid cards settlement. The additional $10 million comes from refund fees collected by NetSpend debit cards that were not paid out during the consumer redress period, according to the FTC statement.
Who’s Eligible
NetSpend accounts covered by this settlement include “accounts acquired by consumers between January 1, 2010 and August 31, 2016 that: (1) were not activated by August 31, 2016; (2) were loaded with funds; and (3) are not excluded by reason of fraud, prior full refund or credit, return of funds to payment source, escheatment of funds, or similar reason agreed upon by the parties.”
Potential Award
Varies
Proof of Purchase
Claimants should submit information requested in the notice of settlement that they receive via email and/or hard copy.
Claim Form
No Claim Form has been made available. NetSpend was required to provide notice by email or mail no later than June 8, 2017. Claimants can make a claim by responding to that notice.
If you believe you may be qualified but did not receive notice, you can contact the FTC via the settlement website or by sending an email to NetSpend@ftc.gov.
Claim Form Deadline
10/07/2017 UPDATED
Case Name
Federal Trade Commission v. NetSpend Corp., Case No. 1:16-cv-04203-AT, in the U.S. District Court for the Northern District of Georgia
Settlement Website
Class Counsel
Mark Glassman
Adam M. Wesolowski
Robin L. Rock
FEDERAL TRADE COMMISSION
Defense Counsel
Steven M. Kaufman
Natalie Fleming Nolen
Sarah N. Davis
MORRISON & FORESTER LLP
Michael B. Terry
BONDURANT MIXSON & ELMORE LLP
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127 thoughts onFTC NetSpend Prepaid Cards Settlement
I need to file in them.please they have taken so much money from me and I have 200 they have had since may can’t use card won’t activate it unless I give them 180.00