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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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128 thoughts onFTC NetSpend Prepaid Cards Settlement
Yes I need to make a class action lawsuit against net spend I have about fifteen different net spend cards that doesn’t have any of my money on it and they were very rude about it never no money since 2017 I need some kind of assurance or is this how companies get away with consumers money 6 yes I waited to whom it my concern thank you elizabeth
In 2014 Netspend sent a card to my year olds address (at the time) it was a little over three thousand in my account… The money was spent and I couldn’t get a refund
I am fighting with netspend as we speak cause they froze my card for suspension of fraud ..will not tell me what transaction made them think that ..I am disabled and my check get directly deposited now I have no money cause they won’t really the hold til I send pictures of my license, social security card and birth certificate..I’ve had the card for many urs pay the same bills get the same direct deposit for disability but all of a sudden they want pictures of my documents..I thought u call them they ask did u make this transaction on this date and time ..I guess not I feel this is suspicious of them wanting pictures of my documents..I don’t know how I’m gonna pay my bills and already already spoke to disability and unfortunately there’s nothing they can do cause the fund were released ro netspend who now owes me as of this coming Monday June 26,2023 an amount of 994.00…
Netspend closed. My. Account. Without telling. Me. And. Also. Kept. My. $329. That. They. Wouldn’t. Give back. Would. Somebody please. Help. Me. Get. My money back I only. Have, $60 till. July 29th 2023
I lost $1400 due to netspend letting someone from Pakistan take money off my netspend card.
This company made my life a living hell I cried and cried went into a deep depression they would hang up the phone on me over and over again and would say they don’t it see where my money is and there is no money there and on top of that while my money was out in limbo they ordered another card without my conscent it took me almost 2 weeks to get my money on that card that they sent but I didn’t request them on top of that they took $42.00 that in which Amazon credited my account and the good thing is that Amazon they have records to backup that they released it to Netspend and now that I can remember they have been for a while now taking money out my account with out me knowing I feel like a fool this saddens me why would they did this to me😢😡 I even was having chest pain because of them not releasing my money back on my card they were saying over and over again what streets or street names are near you mind you that is not my address I currently live on right now they was asking about an address I lived on about 6 years ago
I totally understand these people should be brought the prosecution
Sorry Too Hear That Netspend closed my account all because I told them too investigate fraudulent charges from Amazon now I don’t have. Access. Too My. Money. And I. Only have $60. Till I. Get. Paid. Again. And. That. Is. July 29th. 2023. Somebody. Please help. Me. Get. My. Money. Back. That. Was a total. Of. $329.00
Locked my account due to suspicious activity but won’t explain the activity, refuses to acc any of the proof of address documents I sent in .and yes many off them off the list of proof of address examples they had. Have contacted many of different netspend departments and comes down to nobody can do shit about shit . They get paid to say we need a document goodbye .,..I have 2500 in savings and 700+ in checking acc. Stole from me over activity I am kept from knowing and without my permission, ,a simple call should have been enough for me to be like yeah I made that transaction and that would be it … this is bullshit I have a family to provide for and this fraudulent company needs to give me my money. I’ll keep leaving complaint on every site and group I find on this matter bc its happening to many of us as my research has shown so far.
I totally understand these people should be brought the prosecution
I recently purchased Visa card to give as gift. They refuse to give as # to activate the card. I don’t blame them.
What are we to do to get money back. Phone calls and contact online are brick walls
I. Need your help Netspend closed my. Account. Without. Telling. Me. And. Kept my. $329. Somebody please help me. Get. It. Back. My. Email. Is Johnkarpinski987@gmail.com
Any updates on this NetSpend I’ve had NetSpend cards several different ones for over 10 years now still waiting
Haven’t read any up dates on this, since…