FTC NetSpend Prepaid Debit Card Settlement

Settlement Structure: Claims Made

Active: Closed

Closed Settlement Statement:

According to court documents, the claim submission deadline has passed. Please contact the claims administrator if you have any questions.

Case Summary:

Thanks to a case brought by the Federal Trade Commission, NetSpend has agreed to provide refunds and settle a case related to NetSpend’s prepaid debit cards.  The plaintiff alleged that NetSpend advertised immediate access to funds, guaranteed approval, and always-available funds, among other benefits, that they did not or could not provide.  Many low-income people use prepaid cards instead of bank accounts, the complaint claims.  Delays and lack of access to funds caused severe hardships, such as evictions, the repossession of cars, and late fees on bills.

Docket Number:

1:16-cv-04203-AT

Company: NetSpend Holdings Inc.

Filing Deadline: October 7, 2017

Class Period: January 1, 2010 to August 31, 2016

Proof of Purchase:

Yes, mail or e-mail notice from NetSpend

Eligibility:

You may be eligible for a refund if you acquired a NetSpend card account between January 1, 2010 and August 31, 2016, and that account: 

  • was not activated by August 31, 2016,
  • was load with funds, and
  • was not excluded for fraud, prior full refund or credit, return of funds to payment source, escheatment of funds, or similar reason.

If you are eligible, you should have received a notice from NetSpend by mail or e-mail. 

Typical Settlement Amount:

Varies; refund of any funds due to you that are still retained by NetSpend

Total Settlement Amount: $53,000,000

Class Representative Proposed Incentive Fee:

Law Firm:
Federal Trade Commission

Case Name: Federal Trade Commission v. NetSpend Corp.

Settlement Website: NetSpend Refunds

Claims Administrator:
Federal Trade Commission

Claims Administrator Contact Information:

NetSpend@ftc.gov

Tags: Prepaid cards, Your Money