The Federal Trade Commission (FTC) is refunding ten million dollars worth of checks to the victims of a prepaid debit card scam operated by NetSpend Corporation which paid the ten million dollars to the FTC as a part of a settlement with the FTC. NetSpend told consumers, many of whom did not have bank accounts, that its reloadable prepaid debit cards provided a quick and easy way to access their money. However, many customers of NetSpend found that once they loaded funds onto the cards, they could not access their funds due to NetSpend denying or delaying activation of the cards. NetSpend also delayed for weeks the return of funds to customers who closed their accounts and requested refunds. In addition, theses customers also were charged excessive fees. All of this caused severe hardships to many NetSpend customers who suffered evictions, car repossessions and late fees on bills due to their inability to access their funds. If you were a victim of this scam, you may be eligible for a refund. For more information about this refund program, click on the FTC Scam Refunds tab at the top of the first page of There are no fees involved with receiving a refund through this program. Anyone contacting you about this refund program who demands a fee or payment of any kind is a scammer.
Prepaid reloadable debit cards can be a convenient way to pay for things instead of using a credit card or a conventional debit card which is connected to the users bank account. For some people, the reloadable prepaid debit card is used as an alternative to a bank account. There are many companies including American Express and Chase that offer reloadable prepaid debit cards at little cost. It is important to note that unlike secured credit cards where you deposit money with the secured credit card issuer, the prepaid debit cards do not help you build your credit.
Here is a link to an article that provides information about the best prepaid reloadable debit cards.
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