Attorney General Pam Bondi announced late Wednesday a first-of-its-kind settlement requiring reforms to the business practices of Account Now, Inc., First Data Corporation, Green Dot Corporation, Net Spend Corporation, and Unirush, LLC. - five of Florida’s largest prepaid debit card companies.
Following an investigation into complaints that consumers were not clearly advised of important fees and misled by claims that using the debit cards would build a positive credit history, the companies agreed to settle a deceptive practices claim with the Florida Attorney General’s Office.
In addition to an agreement to pay $115,000 to the Central Florida Chapter of Junior Achievement, the companies (Account Now, Inc., First Data Corporation, Green Dot Corporation, Net Spend Corporation, and Unirush, LLC.) must now provide a clear and conspicuous notice of fees and prohibits them from making misleading claims about the ability of prepaid debit cards to build a positive credit history.
“The reforms we are requiring will protect consumers by providing them with the information they need in order to make sound financial decisions, and they establish standard business practices among Florida’s largest prepaid debit card companies,” stated Attorney General Pam Bondi in a prepared release.
To review the settlement agreements, please follow the hyperlinks below:
The Attorney General’s Consumer Protection Division is the enforcement authority for all multi-circuit violations of the Florida Deceptive and Unfair Trade Practices Act. The Division protects consumers by investigating entities that allegedly employ unfair methods of competition or unconscionable, deceptive and unfair practices in any trade or commerce.
Attorney General Bondi encourages Floridians who believe they may have been affected by unfair practices when purchasing and using a prepaid card to contact the fraud hotline at 866-9-NO-SCAM (866-966-7226) or to file a complaint online at www.myfloridalegal.com.