Sauder Schelkopf is investigating reports that certain users of Netspend prepaid debit cards have experienced frozen accounts, inability to access funds, and unexpected or unauthorized fees.
If you have been impacted, we encourage you to contact us for a free, confidential consultation.
What Are Consumers Reporting?
Based on consumer complaints and information we are reviewing, individuals have reported:
- Accounts being frozen or restricted, sometimes without clear explanation
- Inability to access deposited funds, including direct deposits and reloads
- Unauthorized or unexplained transactions
- Unexpected or excessive fees, including maintenance and usage charges
- Delays in resolving disputes or obtaining assistance from customer service
In many cases, consumers report that they relied on these accounts for everyday expenses and were unable to access their own money when they needed it most.
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.
Why This Matters
Prepaid debit cards are often marketed as an alternative to traditional bank accounts and are frequently used by individuals who rely on immediate access to funds.
When issues arise—such as account freezes, delayed access to funds, or unexplained fees—consumers may be left without access to money needed for rent, food, transportation, or other essentials.
Our Investigation
Sauder Schelkopf is evaluating whether certain practices may violate consumer protection laws, including:
- Improper account restrictions or freezes
- Failure to provide timely access to deposited funds
- Assessment of unauthorized or undisclosed fees
- Inadequate dispute resolution processes
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:
- Had their account frozen or restricted
- Could not access money deposited onto their account
- Were charged fees they did not understand or authorize
- Experienced difficulty resolving issues with customer service
Contact Sauder Schelkopf today for a free, confidential consultation.
Experience Matters
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 you believe you have been affected by Netspend’s practices; you can contact the attorneys at Sauder Schelkopf by filling out the form on this page.