Prepaid Debit Card Companies May Be Cheating Consumers

Our attorneys are currently investigating a potential class action against the sellers of prepaid debit cards. Prepaid debit cards can be useful for younger people and for people with credit problems. However, prepaid debit cards are subject to less regulation than regular debit and credit cards, and some unscrupulous companies take advantage by charging customers with undisclosed and/or unfair fees. Companies have also falsely claimed that the prepaid debit cards will improve users’ credit scores. In addition, some companies take customers’ money and then do not allow customers to use their cards, even though the companies continue to charge fees to customers with blocked cards.

These illegal practices have drawn the attention of law enforcement. Florida’s Attorney General recently issued subpoenas to five prepaid debit card companies that may be charging customers hidden fees or misleading customers about the way that prepaid debit cards affect their credit scores. After investigating the issue, Florida’s Attorney General said that “failing to disclose fees is essentially stealing money from consumers.” Connecticut’s Attorney General also stated that some prepaid debit cards “raise considerable ethical and, perhaps, legal questions under Connecticut’s consumer laws.”

If you purchased a prepaid debit card and were treated unfairly (including being charged with undisclosed and/or unfair fees, being victimized by false statements about your credit score, or not being allowed to use your card after giving your money to the company), you may have been a victim of consumer fraud. Please contact us immediately to discuss your legal options.