November 10, 2016

The FTC has charged that in numerous instances, prepaid card company NetSpend Corporation deceived consumers, many of whom do not have bank accounts, about access to funds deposited on defendants’ debit cards. According to the FTC’s complaint, NetSpend tells consumers that its reloadable prepaid debit cards offer an alternative way to store and immediately access their funds. But once people have loaded funds onto the cards, many of them find they cannot access their money, either because NetSpend denies or delays activation of the card, or because it blocks consumers from using it. The FTC seeks to return consumers’ funds and ensure that NetSpend provides them with promised access to their funds in the future. FTC

Tagged in: Antitrust Enforcement,