Friday, June 3, 2011
Seattle law firm scrutinizes prepaid
Seattle-based class-action law firm Hagens Berman Sobol Shapiro LLP began an investigation into the prepaid card industry following the Attorney General of Florida office's May 19, 2011, announcement that she had subpoenaed five prepaid card providers, charging them with possibly engaging in deceptive and unfair business practices.
At issue is whether First Data Corp., Green Dot Corp., Account Now Inc., Netspend Holdings Inc. and Unirush Financial Services LLC charge hidden fees to users of their prepaid card products. Hagens Berman said it is investigating whether such practices are being employed by companies in states other than Florida. "These cards – often marketed to those who don't have access to traditional bank accounts – do provide convenience for consumers," said Steve Berman, Managing Partner at the law firm. "However, these card issuers have an obligation to be transparent about the fees they charge, something that now is clearly in question."
Hagens Berman is seeking consumers who used prepaid cards and felt that companies providing the cards failed to disclose hidden fees or otherwise misrepresented card features.
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