The FTC has filed a complaint with NetSpend in the District Court in Georgia over misleading marketing practices. The FTC website has a good overview of their allegations, but it stems from the fact that NetSpend marketed their product as giving consumers immediate access to those who purchased the card and that cardholders funds would always be available, as well as guaranteed approval.
The FTC claims that due to a identity verification process this wasn’t always the case. NetSpend claims that they were complying with federally mandated obligations under the USA PATRIORT ACT and that no one was deceived or harmed by the company’s compliance with these laws.
Many readers have this cards as they used to earn a 5% APY on balances of up to $5,000 (this has now been slashed to only $1,000). Alternative high interest accounts can be viewed here.
Hat tip to reader Phil
