[Resolved] Netspend / account suddenly closed after activation/ denied access to federal student aid funds

Austin, TX, United States
Contact information:

I was sent a netspend card in august 2016 which I activated to have my student loan disbursement sent to. I registered for online access on 10/18/2017 and I was due to start classes at Lone Star College on 10/24/2017. My disbursement was sent to my card on 10/25/2016. I received an email from netspend advising that I my deposit was pending and that the account was blocked because they needed additional info to make the funds available. I contacted them and they asked my ssn dob address - which i gave them the address where the card was sent however i advised that I had just moved to that address and asked if they wanted my previous address and the rep said no but then they advised that I did not pass verification due to the address. They requested for me to send in documents to verify my identity. I sent in the requested information copy of id, ssn card, bill in my name and I also sent in my hhsc award letter confirming address. They accepted the proof of address and my social security card however they denied my id due to it being a temporary permit tho it was valid and not expired . I sent a copy of my passport and they activated the account where i was able to use the account the night of 10/26/2017. I used the account to pay for some school items and the next morning when i tried to order my books my card was declined. I contacted netspend and they advised that the account was closed due to some sort of fraudulent activity. I spoke with numerous reps who adviosed that a refund of my funds where on the way but they were never sent . I filed a complaint with the ftc, cfpb, bbb, netspend. to no avail. they then request a letter of indemnity completely ignoring the federal restrictions on federal student aid . Lone star College has advised netspend directly that they do not send out letters of indemnity. and Netspend Is unwilling to work out other solution after the school who has clearly verified my identity, has advised for the funds to be sent to me. They even have a court order ftc case advising them to refund the fund to accounts such as mine and they are still not willing to work with me and the fund are still sitting on the account 10 months later.

  • Resolution statement

    Customer care service did everything in their power to resolve this complaint. All attempts to contact the complainant have failed. Therefore, this complaint has been annulled and must not be considered where image of the company in question and it's services are concerned.

  • NetSpend Corporation Customer Care's Response, Aug 04, 2017

    Hello RoshanaKnighton
    We are just checking up with you to make sure all your questions or concerns were addressed. If there is anything we can do to assist you, please email us at [protected]

Jun 15, 2017

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