Sauder Schelkopf is investigating reports that users of Netspend debit cards have experienced frozen accounts and the inability to access their funds. It has been alleged that Netspend has frozen consumer accounts in connection with debt collection efforts, even when the funds are protected under state law. It has been further alleged that, instead of notifying the consumer of the attempt to freeze their account, Netspend just freezes the account and, in some instances, improperly allows the debt collectors to claim the protected funds.
Prior Government Action Involving Netspend
Government regulators have previously taken action involving Netspend’s prepaid card practices.
The Federal Trade Commission alleged that Netspend deceptively marketed its prepaid debit cards, including claims that funds would be immediately accessible.
- The FTC alleged that some customers were unable to access funds deposited onto their cards, sometimes due to delays in activation or account restrictions
- As part of a resolution, Netspend agreed to provide monetary relief and refunds to consumers
- The FTC later distributed more than $10 million to over 430,000 customers who could not access their money
Reports associated with that matter also indicated that:
- Some consumers experienced weeks-long delays in accessing funds
- Others faced financial hardship, including missed bill payments or worse
Netspend resolved those allegations without admitting wrongdoing.
On January 30, 2025, New York Attorney General Letitia James announced a settlement exceeding $1 million with Netspend Corporation, a provider of reloadable debit and payroll cards.
Contact Us
If you experienced issues with a Netspend account, you may be able to help with our investigation. We are interested in speaking with individuals who:
About Sauder Schelkopf
Sauder Schelkopf has a nationally recognized litigation practice. The firm currently serves as court-appointed lead counsel in courts across the country. The attorneys at Sauder Schelkopf have recovered over $1 billion on behalf of their clients and class members. Our firm was recognized by the Legal Intelligencer’s 2022 Professional Excellence Awards. The Legal Intelligencer’s Professional Excellence Awards honor Pennsylvania law firms and attorneys who have made a significant, positive impact on the legal profession. Our firm was named in the Litigation Departments of the Year (Specialty Area category; runner-up), an award that honors the best litigation practice in a small or mid-sized firm in Pennsylvania. This recognition was based on the firm’s 2021 litigation work and its important ongoing cases. LawDragon has recognized our attorneys in its list of the “500 Leading Plaintiff Consumer Lawyers” for 2022. This list notes: “From the opioid epidemic to toxic substances and defective products, truck accidents to wildfires and sexual abuse, these are the lawyers who stand on the front line in individual lawsuits and class actions seeking justice.” Mr. Schelkopf was named to Pennsylvania’s Best Lawyers® 2022 for Class Actions/Mass Tort Litigation. The American Lawyer named Mr. Sauder to its 2021 Northeast Trailblazers. The honor recognizes 60 lawyers who are “truly agents of change.” It “recognizes professionals in the Northeast who have moved the needle in the legal industry.” The Legal Intelligencer named Mr. Sauder and Mr. Schelkopf in its 2020 Pennsylvania Trailblazers list recognizing 31 lawyers who “have taken extra measures to contribute to positive outcomes . . . and who are truly agents of change.” The Legal highlighted the firm’s innovative work on advocacy as class counsel in large institutional sex abuse cover-ups, women’s, and children’s rights. Our attorneys have also consistently been recognized by their peers being named to Pennsylvania SuperLawyer, a distinction held by the top 5% of attorneys in Pennsylvania. The National Trial Lawyers Association has also selected our attorneys as the Top 100 Trial Lawyers in Pennsylvania.
We Want to Hear from You
If your Netspend account has been frozen, you can contact the attorneys at Sauder Schelkopf by filling out the form on this page.