Attorney General Letitia James secured over $1 million from Netspend after an investigation revealed the company illegally froze customer accounts, charged unlawful fees, and imposed excessive interest rates on paycheck advances. These actions primarily harmed low-income New Yorkers, including those relying on Social Security and veterans benefits.
Netspend will refund over $735,000 to tens of thousands of affected consumers and pay more than $350,000 in state penalties. The company must also reform its practices to comply with New York’s consumer protection laws.
James emphasized her commitment to holding businesses accountable for defrauding consumers, urging residents to report illegal account freezes or debt seizures.
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