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Green Dot and MasterCard have entered into a settlement agreement with a group of Walmart MoneyCard holders who were unable to access their funds during a longer than anticipated disruption in service last May.
The $6.4 million settlement provides compensation for all Green Dot MasterCard holders who were unable to access or spend their account funds from May 15, 2016 through May 22, 2016 as a result of the service disruption.
According to court documents, to compensate cardholders for the inconveniences and losses suffered during the service disruption, Green Dot and MasterCard will provide Class Members with an active Green Dot account a two-month fee “holiday” where they will not be assessed any monthly maintenance fees.
Additionally, Class Members with an active Green Dot account will receive a credit to their account in the amount of either $50, $100, or $750 depending on which of the three settlement claim tiers they fall under.
Green Dot is one of the largest prepaid card companies on the market; its products are available online and at more than 100,000 locations nationwide. Walmart is Green Dot’s largest retail distributor, with 46 percent of Green Dot’s operating revenues derived from products and services sold at Walmart stores.
During a period of time between May 15, 2016 and May 22, 2016, customers who used the Green Dot Walmart MoneyCard experienced an interruption in service, reportedly due to a slowdown in transaction processing by Green Dot’s payment processor, MasterCard.
Green Dot reportedly told cardholders in advance about a 12-hour outage to transition to the MasterCard payment system. However, the outage last much longer than anticipated, cutting off tens of thousands of consumers from their money, the lawsuit stated.
This disruption in service led to two class action lawsuits filed in California federal court against Walmart by frustrated customers who reportedly were not able to view their account balances or activate new cards.
Customers also reported that their cards had been declined for purchases, causing substantial hardship since without access to their funds, they were unable to pay for essential goods and services.
“MoneyCard services were frozen and unavailable, not merely for 12 hours, but for several days in May 2016. During this time the holders of MoneyCard accounts could not spend, withdraw, or otherwise access the funds in their accounts,” the consumers alleged.
The Green Dot outage isn’t the first time a prepaid debit card supplier has faced legal issues relating to disruption in service due to a processing transition.
Last October, MasterCard was also at the center of another prepaid debit card outage, when thousands of RushCard users were locked out of their accounts for several weeks. In May, RushCard parent company Uni-Rush settled a class action lawsuit that resulted from the outage for $19 million.
Top Class Actions will post updates to this Green Dot, MasterCard class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
The Class is represented by John A. Yanchunis of Morgan & Morgan, Richard D. McCune and Joseph G. Sauder of McCune Wright LLP and Daniel C. Girard and Linh G. Vuong of Girard Gibbs LLP.
The Green Dot Walmart MoneyCard Outage Class Action Lawsuits are Kathleen Crook v. Green Dot Corp. et al., Case No. 2:16-cv-04172, and Jason Lewis, et al. v. Green Dot Corp., et al., Case No. 2:16-cv-03557, each in the U.S. District Court for the Central District of California.
UPDATE: The Green Dot MoneyCard service disruption class action settlement is now open. Click here to file a claim.
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6 thoughts onGreen Dot, MasterCard Settle MoneyCard Service Disruption Class Action
I never received anything at all from this claim and I sent in paperwork
UPDATE: The Green Dot MoneyCard service disruption class action settlement is now open. Click here to file a claim.
Green Dot blocked me from m tax refund. $6507. Please help!!!!
When I tried to make a payment on amazon prime they said I couldn’t because I did not have the money because I paid the 100 dollars so they cut me off I called the green dot bank and they said there was no record of that payment and I printed out the statement and shows that the payment went through I would not help me out and they charge me more money on top that that was in march of 2017
What totally astonishes me is that the card I have is a VISA and they made no mention of this in any public release. They should be thoroughy ashamed of themselves. Preying on people who have credit issues and live on a paycheck to paycheck basis. Then telling peole they do not qualify as it was not their cause of my items lost. 1 1994 Harley Davidson Sportster 1200 motorcycle with a replacement value of over $4,000.00, 2 rifles whose replacement costs are in the thousands, one shotgun worth close to $1200.00 and a brand new .40 cal pistol whose replacement cost is just under $500.00. yes, there is correlation and 100% CAUSATION on the part of Greendot Bank and Walmart money Card. What can one d about such shoddy treatment?
Ya gotta ove it when a multinational such as Greendot Bank or Walmartmoneycard can outright LIE abut the timeframe and lny offer up to $1,000.00 as settlement amount. What about folks like myself who are out over sveral thousand dollars due to this outage that began on the 13th of May 2016 and went through until 24 May 2016? How do I get them to reimburse the cost to replace many items I lost to pawnshops during the outage? They say it is not their fault the items were lost which I wil attest. It was I who put them in the pawnshops but had the corporation allowed me to access my funds anytime between May 13th 2016 through May 24th 2016 I would have pulled every single item out of the various pawn shope and not seeking to be made whole again. There is more than correlation, there is full causation. I have still not been made whole almost 6 months later.