Father Says Pre-Paid Debit Card Company Targeted Son


SAY THE MOVE TO MOBILE PHONES IS HERE TO SAY. PREPAID DEBIT CARDS ARE SOLD AS CREDIT CARDS, YOU MAY BE SURPRISED HOW QUICKLY THE FEES CAN ADD UP, EVEN WHEN YOU AREN’T USING THE CARDS. OUR CRISTIN SEVERANCE DID THEIR HOMEWORK ON THE PREPAID DEBIT CARDS . SEVERAL COMPANIES OFFERED THESE PREPAID DEBITS CARDS, THEY ARE NOT REGULAR DEBIT CARDS AND ONE NORTH TEXAS DAD WAS MAD WHEN HIS SON GOT ONE IN THE MAIL. I THOUGHT IT WAS SPAM AT FIRST, I WAS CONFUSED WHY THE BANK WOULD SEND ME A CARD I DIDN’T APPLY FOR. MATTHEW DIDN’T RECEIVE A CREDIT CARD, HE RECEIVED A PER PAID DEBIT CARD FROM THE COMPANY NET SPEND. I THINK THAT WAS A THING. I THOUGHT IT WOULD BE A DEBIT CARD. PREPAID DEBIT CARDS ARE DIFFERENT, THEY ARE NOT SECURED CREDIT CARDS. MARKETED AS A CREDIT CARD WITH TRAINING WHEELS NO, OVERDRAFTS, NO EFFECT ON CREDIT SCORE, EASY TO RELOAD. THIS IS A CARD THAT HE GOT IN THE MAIL. DAD WASN’T SOLD. IT DID HAVE A LOT OF INFORMATION ABOUT DIRECT DEPOSIT. HE WAS MAD MATTHEW WAS SENT THE CARD IN THE FIRST PLACE. I DIDN’T KNOW IT WAS LEGAL FOR THE CREDIT CARD COMPANIES TO SOLICIT MINORS LIKE THAT. HE GOT EVEN MORE UPSET WHEN HE READ THE FINE PRINT. THIS IS WHERE I NOTICED THE FEE, THE FEES ARE REALLY REALLY HIGH. IT COSTS 1 DOLLARS TO USE THE CARD IF YOU SIGN FOR IT LIKE A CREDIT CARD. $2 IF YOU USE YOUR PIN FOR PURCHASES, .50 TO CHECK THE BALANCE, 5.95 A MONTH IF YOU DON’T USE AT ALL. THEY ARE CHARGED $2 A YEAR. — 72-DOLLAR AS YEAR BEFORE THEY EVEN GET TO USE THE THING. IS THIS LEGAL TO SEND THIS TYPE OF CARD TO A MINOR? FOR THE CREDIT CARD ACT ANYBODY THAT IS UNDER 21 WOULD NEED EITHER PROOF OF INCOME OR A CO-SIGNOR LIKE A MOM OR DAD TO GET THEM THIS. THIS TYPE OF CARD DOESN’T FALL UNDER THE CREDIT CARD ACT. THIS IS A UNIQUE GRAY AREA, WHEN WE ARE TALKING ABOUT PRELOADED, MONEY CARDS. MARK SAYS USING ONE WON’T HELP YOU BUILD CREDIT PLUS THE FEES AREN’T WORTH IT. A LOT OF FEES THAT TO ME IF SOMEBODY WAS JUST TRYING TO USE A LOADED CARD A GIFT CARD ESSENTIALLY, YOU WOULD BE BETTER OFF GETTING A GENERAL PURPOSE ONE WITH MINIMAL FEES. I THOUGHT IT WAS HORRIBLE THAT I WAS GETTING BASICALLY ROBBED BY THE BANK JUST FOR HAVING THIS CARD. SO NET SPEND DID REACH OUT, THEY APOLOGIZED AND ASSURED PAUL THAT HIS SON WOULD NOT HAVE BEEN ABLE TO ACTIVATE THE CARD. NET SPEND TOLD US IN A STATEMENT WE DO EVERYTHING WE CAN TO MAKE SURE WE DON’T SEND CARD OFFERS TO ANYONE UNDER 18, IF SOMEONE UNDER 18 ATTEMPTS TO ACTIVATE A CARD WITH US WE REQUIRE A PARENT TO SERVE AS THE PRIMARY CARD HOLDER AND WILL NOT ACTIVATE A CARD OTHERWISE. THIS STATEMENT DID NOT AIR FRIDAY NIGHT, NET SPEND DID APOLOGIZE AND TRIED TO RESOLVE THIS. YOU CAN READ THEIR FULL STATEMENT ON CBSDFW.COM. GILMA. THANK YOU, CRISTIN.

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