NetSpend Responds to Federal Trade Commission Complaint
November 10 2016 - 3:15PM
Business Wire
Today, NetSpend, a leading provider of prepaid card solutions,
became subject to a complaint filed by the Federal Trade Commission
(FTC) related to certain NetSpend marketing materials. NetSpend
intends to vigorously contest this complaint and has substantial
defenses to do so.
At issue in the complaint is whether consumers were deceived
because of NetSpend’s compliance with federally mandated
obligations under the USA PATRIOT Act to confirm the identity of
those acquiring NetSpend prepaid cards. NetSpend takes seriously
and carefully adheres to these legal mandates to fight identity
theft, money laundering and terrorist financing and believes that
no one was deceived or harmed by the company’s compliance with
these legal obligations. The complaint also relates to NetSpend’s
fraud controls, which are required by federal law, including the
FTC’s own Red Flags Rule, to monitor accounts for account takeover
and possible fraud in order to protect consumer funds. These
processes are not deceptive, but instead comply with the law and
protect consumers.
Customers expect and deserve strong safeguards that combat
identify theft, fraud and other criminal activity. NetSpend is
committed to meeting those expectations and complying with federal
law while delivering the convenience and financial flexibility that
our products offer. NetSpend promotes financial inclusion by making
prepaid cards available to millions of hard-working Americans who
do not have access to a traditional bank account or who choose to
rely on alternative financial services.
NetSpend brings cardholders into the digital economy with
electronic payments, online account tools, and automatic balance
updates. The NetSpend prepaid card is a bank-issued product that
offers FDIC insurance, interest bearing savings accounts, payback
rewards, and direct deposit.
About NetSpend, a TSYS Company
NetSpend is the prepaid provider of choice to self-banked
consumers and the brands that serve them. With a mission to empower
consumers with the convenience, security and freedom to be
self-banked, NetSpend’s products have helped over 10 million
consumers spend, budget and pay bills since 1999. Consumers can
reload and find NetSpend Prepaid Cards at convenient locations
nationwide through NetSpend’s extensive network of 130,000 reload
points and more than 85,000 distributing locations and employers,
including check cashers, convenience stores, grocers, pharmacies,
insurance providers and tax preparers. Headquartered in Austin,
Texas, NetSpend is a wholly owned subsidiary of TSYS (NYSE: TSS).
For more information, please visit www.netspend.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161110006455/en/
NetSpendMedia Relations:mediarelations@netspend.comorTSYSMedia
Relations:Cyle Mims, 706-644-3110cylemims@tsys.comorInvestor
Relations:Shawn Roberts, 706-644-6081shawnroberts@tsys.com
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