EddieJayonCrypto

 8 Feb 25

tl;dr

A billion-dollar fintech firm, Netspend, is settling with regulators and preparing to send $735,000 to tens of thousands of customers after violating consumer protection laws in New York. The firm charged "outrageous" interest rate fees, froze customers' accounts, and turned over their funds to debt...

A billion-dollar fintech firm, Netspend, has agreed to pay $735,000 in restitution and change its policies after violating consumer protection laws in New York. The settlement follows allegations that the firm charged "outrageous" interest rate fees, froze customers' accounts, and turned over their funds to debt collectors.

New York Attorney General Letitia James secured a $1 million settlement from Netspend, highlighting the firm's violations of consumer protection laws and its impact on low-income New Yorkers. Netspend will pay over $350,000 in penalties to the state and distribute the $735,000 to affected customers, with active account holders receiving credited restitution and others receiving checks by mail.

Netspend's consumer business, acquired for $1 billion in 2023 by Rêv Worldwide and Searchlight Capital Partners, now operates under the new parent company Ouro.

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 8 Feb 25
 8 Feb 25
 8 Feb 25