Pre-paid Visa card problems

[Wassercrats]

I decided to try a pre-paid Visa card for the first time. I gave all my correct information. The only suspicious thing I might have done is give my free voicemail number instead of my home number. I got a rare call to that number, from someone who just said "hello," which might have been an attempt to verify my information. Maybe the different area code or the canned welcome message and the fact that I wasn't able to answer made them suspicious. I got an email saying that they can't verify my information. I called and they said there's a problem with my birthdate. They asked me to fax them things that I don't have. I emailed them and they responded:We are required by our bank as well as MasterCard and Visa associations to
be compliant with AML (Anti-money laundering) and BSA (bank security act)
laws, which can be viewed at
http://a257.g.akamaitech.net/7/257/2422/08aug20031600/edocket.access.gpo.gov/cfr_2003/julqtr/31cfr103.121.htm.

Both laws require that we have and verify the social security number (SSN
who is a US citizen) or tax id number (TIN) or Passport on each individual
cardholder. We realize this is new and Netspend was not previously required
to enforce this regulation, however at this time the Department of Treasury
via our bank is requiring this of every bank and financial institution in
the country.

Once the account is purchase please fax one of the following with a phone id
(social security card, tax id number card or passport) to the New Accounts
Department at 512-692-2547. We do apologize for any inconvenience this has
caused you.I responded:I read the anti-money laundering law and it sounds like the level of
verification is up to you. I gave you what the law requires, but for some
reason, you don't trust the information I gave you.

The law you linked to says "A bank must implement a written Customer
Identification Program." Please email or provide a link to your Customer
Identification Program so I understand my rights and what's required of me.

Also, I'm not sure I understand what you're asking for in your email. Can I
just fax you my SS card with my name? Do you need a telephone number? Will
any number where I can be reached be enough, even if it's voice mail where
you leave a message?They responded with the identical email as before! I responded with:The law you linked to (
http://a257.g.akamaitech.net/7/257/2422/08aug20031600/edocket.access.gpo.gov/cfr_2003/julqtr/31cfr103.121.htm )
says "A bank must implement a written Customer
Identification Program." Please email or provide a link to your Customer
Identification Program so I understand my rights and what's required of me.

Also, I'm not sure I understand what you're asking for in your email. Can I
just fax you my SS card with my name? Do you need a telephone number? Will
any number where I can be reached be enough, even if it's voice mail where
you leave a message? On the phone, you asked for more, so I want to make
sure.They responded just with "You can fax your information at 1(512)857-0263" and my last response was:Please specify what I should fax to you. Also note that I don't have the
ability to send faxes from home and I'd have to pay some store to fax it for
me. I hope that's ok. But what should I fax to you?I should have stuck to check payments.

[Wassercrats]

They got back and said what I need to fax. I told them what I do and don't have, and they said "Well you could try it, or just send the ssn,name,dob." TRY IT???!!! Ok, I'll try it, and if it doesn't work, I'll sue their ass!

[Jeff]

They probably don't have the manpower to reply to each of your inquiries personally because of the swarm of nigeria scammers sending thousands of similar emails each hour :(

[Matt]

I don't really deal w/ pre-paid credit cards or one-time use credit card numbers, but I do know from the processing end that they aren't treated quite the same way as regular credit cards. This may have flagged something on the merchant's end. I'm sure that giving a free voicemail number didn't help out either.

Ok, I'll try it, and if it doesn't work, I'll sue their ass! Okay... you could just do business with someone else. I'm not sure what it is that you're trying to buy, but I wouldn't feel comfortable supplying this information. As far as what is sufficient evidence that you are who you say you are, it seems a bit arbitrary to me. I have seen requests for authentication ranging from signed affidavits (not a big deal) to a copy of the credit card statement, copy of driver's license, AND affidavit (pretty inconvenient). In a case like this, you have to recognize that your account was flagged for suspected fraudulent activity. I would guess that this is your first time dealing with the merchant, so convincing the merchant it's NOT fraud will probably be more trouble than it's worth. I would NEVER supply my SS# in order to prove my identity to a merchant... at best you're inviting the merchant to run a credit check on you... at worst you're inviting identity theft when all that information gets lost/ stolen.

Just buy from a different merchant and supply a phone number that matches credit card (one that a human being will answer on).
-Matt

[Wassercrats]

It's not the merchant I'm having a problem with. It's the issuer of the card. I used the card once to register domain names, and that went through fine. I have about $40 left on the card. The above email quotes are from Netspend (http://netspend.com/).

I might contact their regulatory agency for more sane and definitive answers. I don't want to give all my personal information to a store that has a fax service, especially when I'm not sure it will be enough.

[Daytripper_MI6]

I used the card once to register domain names, and that went through fine. I have about $40 left on the card.
So you already have a card through them(with $40 left on it)? Can't you just add more funds to it?

[Andilinks]

I like Discover Card through Sam's Club, there's no fee and you get cash back. Most places accept it, I use it for everything. And unlike a prepaid card you get to use their money for 30 days, my cutoff date is the 20th so I do all my shopping the week after the 20th (which is like, now :)).

If credit is an issue, try again if you haven't applied since the bankruptcy laws were changed, it is very easy to get a credit card now.

[Wassercrats]

Since they're complaining about not being able to verify my information, I don't think it's a good idea to add money to it. I might not be able to use it. I paid about $10 for it, so I'd like to add money to it and use it again, but I'll have to work this out. It's no big deal if I can't use a debit card. I just don't want to lose the $40 that's on it, and I'd want my $10 back if I can't use it any more.

[Wassercrats]

If anyone else has a problem with the issuer of their debit card (assuming it's issued by a national bank (http://www.occ.treas.gov/customer.htm#What%20is%20a%20national%20bank)), you can complain to the Comptroller of the Currency's (OOC) Customer Assistance Group (http://www.occ.treas.gov/customer.htm#Filing%20a%20Formal%20Complaint). I didn't even confirm whether the card I was having a problem with was issued by a national bank. All I knew was that the company was Netspend, but when I complained to the OOC, the they did the research and the acknowledgment letter named the bank (Inter National Bank). "The average complaint is usually completed within 60 days."

[Wassercrats]

Pretty fast action from my OCC complaint, except the debit card issuer is giving me only until 9:30 am tomorrow to withdraw my money.

[Wassercrats]

I went to the ATM machine shortly after my last post, but I had to withdraw in multiples of $20 and I would have lost too much. There were a couple more exchanges with the card provider, and I finally told them I'll wait for the Comproller of the Currency to make his decision and gave them the case number. Today I received this email:WE, AT THE NEW ACCOUNTS DEPARTMENT, WE REVIEWING YOUR SITUATION, WE
DON'T KNOW EXACTLY WHAT HAPPENED, BUT THIS COULD HAVE BEEN PREVENTING
FROM GOING THIS FAR. WE VERIFIED YOUR INFORMATION AND APPROVED YOUR
ACCOUNT. YOU NOW HAVE ACCESS TO YOUR CARD. YOU ARE WELCOME TO KEEP THE
CARD/ACCOUNT WITH US OR CHOOSE TO CLOSE IT. IF YOU CHOOSE TO CLOSE IT,
PLEASE SEND US AN E-MAIL AT CARDORDERS@NETSPEND.COM REQUESTING CLOSURE
OF YOUR ACCOUNT.

WE DEEPLY APOLOGIZE FOR THIS SITUATION. WE SENT YOU THE LETTER/E-MAIL
REQUESTING YOUR DOCUMENTATION, THIS WAS A PROCESS WE HAVE TO FOLLOW IT
IS PART OF OUR TERMS AND CONDITIONS. BASICALLY, WE DO THIS TO PROTECT
OUR CARDHOLDERS FROM IDENTITY THEFT. IF YOU WOULD HAVE LOST YOUR WALLET
ANYONE COULD HAVE OPENED AN ACCOUNT UNDER YOUR NAME, BUT WHEN WE VERIFY
YOUR INFORMATION AND REQUEST DOCUMENTS, NOT EVERYONE WILL BE ABLE TO
PROVIDE ALL YOUR CORRECT INFORMATION.

ONCE AGAIN, WE HOPE YOU ACCEPT OUR APOLOGIES.

THANK YOU FOR YOUR TIME.

SINCERELY,




NETSPEND CORPORATION
NEW ACCOUNTS DEPARTMENT
1-866-387-7363It goes this far and I still get an email from someone who writes like that?

[Wassercrats]

When the OCC didn't get back to me with their decision as promised, I requested documents regarding my Netspend complaint and other Netspend complaints under the Freedom of Information Act. The OCC acknowledged my request, but it's been 20 days and they haven't complied with 5 USC 552 (a)(6)(A) which says:Each agency, upon any request for records made under paragraph (1), (2), or (3) of this subsection, shall - (i) determine within 20 days (excepting Saturdays, Sundays, and legal public holidays) after the receipt of any such request whether to comply with such request and shall immediately notify the person making such request of such determination and the reasons therefor, and of the right of such person to appeal to the head of the agency any adverse determination;I'm not sure whether I've "exhausted my administrative remedies" and it's time to take it to U.S. district court ( 5 USC 552 (a)(6)(C)(i) and 5 USC 552 (a)(4)(B) ) or whether "immediately notify the person making such request" means they just had to mail me a letter yesterday. A CITIZEN'S GUIDE ON USING THE FREEDOM OF INFORMATION ACT AND THE PRIVACY ACT OF 1974 TO REQUEST GOVERNMENT RECORDS (http://www.sba.gov/foia/guide.html#VIE) says:The statutory time limits for responses are not always met.
An agency sometimes receives an unexpectedly large number of
FOIA requests at one time and is unable to meet the deadlines.
Some agencies assign inadequate resources to FOIA offices.
Congress does not condone the failure of any agency to meet the
law's time limits. However, as a practical matter, there is
little that a requester can do about it. The courts have been
reluctant to provide relief solely because the FOIA's time
limits have not been met.

The best advice to requesters is to be patient. The law
allows a requester to consider that his or her request has been
denied if it has not been decided within the time limits. This
permits the requester to file an administrative appeal or file
a lawsuit in Federal District Court. However, this is not
always the best course of action. The filing of an
administrative or judicial appeal will not necessarily result
in any faster processing of the request.So I guess I'll wait.