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Expert Analysis

NetSpend Case Has Relevance Beyond Prepaid Card Industry

By Jacqueline Allen ( June 13, 2017, 2:42 PM EDT) -- NetSpend Corp. in late March agreed to settle with the Federal Trade Commission regarding allegations that NetSpend deceived consumers about certain aspects of its reloadable prepaid cards. NetSpend will pay $40 million in restitution to customers and $13 million to the FTC under the enforcement order. Providers of consumer financial products and services — not just prepaid card providers — should carefully review the FTC's allegations. The allegations provide insights on practices the FTC perceives to be deceptive, and how to avoid engaging in them....

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