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PayPal, Netspend, Bancorp Class Action Lawsuit Ebony 2021

Consumer Class Actions

PayPal, Netspend, Bancorp Class Action Lawsuit Over Failing To Disclose Bank’s Fees Policy Properly

New York Mother Takes PayPal And Other Financial Services Companies To Court For Different State Law Violations

Financial services giants and players PayPal, Bancorp, and Netspend Corp are facing a complaint from a New York woman after they allegedly failed to provide proper disclosure of the bank’s charge policies. 

In addition, they reportedly continued to subject the woman to very high fees after they signed up for a “no charge” debit card with PayPal. 

Aggrieved Single Mother Sues

New York single mother Ebony Morehouse is suing the trio of companies after she availed a card she thought was under PayPal to be able to cash in on her social welfare benefits faster during the wake of the Coronavirus disease-2019 (COVID-19) pandemic. 

Morehouse serves as the plaintiff in the lawsuit she filed in a New York federal court. Morehouse is a single mother with a disability that enjoyed help in helping her family’s finances. 

It was reported that she receives almost $1,000 a month as a supplemental fund for their monthly budget and expenses. 

She allegedly decided to ditch her former bank in 2019 due to poor customer service, which then led to her deciding to avail of another prepaid card, believing that she would be able to cash in her benefits faster. 

At the beginning of the COVID-19 public health crisis, she reportedly switched to a PayPal administered prepaid card to serve as the main gateway for her family’s benefits. 

Unfortunately, she soon lost her card and had no access to the benefits she needed the most during such difficult times. 

Morehouse tried to reach out to the company, but she didn’t get any response. When she asked her local welfare office for help in accessing her money, she was told that they couldn’t do anything about it unless PayPal acts on it. 

PayPal And Other Finance Companies Transgressed The Law

With help from her legal counsel, the aggrieved mother was able to find out that PayPal did not actually administer the card but Netspend themselves. 

When she obtained a new card, she was horrified to find out that her funds were charged excessive amounts during the whole ordeal. She ended up incurring monthly fees, ATM charges, and the like. 

Complainant Morehouse is taking PayPal, Netspend, and Bancorp to court for alleged violations of different state of New York laws. She continued that the trio did not properly give her a clear disclosure of the terms of her prepaid card before she signed up for it. 

Additionally, she reported that she has undergone a tremendous amount of stress and emotional trauma during the period that she was locked out of her essential line for social welfare support. 

She continued that she wasn’t able to stock up on food and other necessities during such a tumultuous time. 

Company Information 

PayPal, officially known as PayPal Holdings, Inc., is a financial services company focused on providing online financial transaction services to its customers. Founded in late 1998 in California, the company is now headed by its CEO Dan Schulman and owns many subsidiaries ranging from Venmo, Xoom Corporation, to Honey. 

Meanwhile, NetSpend Corporation is a Texas-based financial services entity known to provide different types of financial-related services such as card processing and the like. It was founded more than two decades ago. It is under the supervision of its parent organizations Global Payments and TSYS. 

Lastly, Bancorp is a bank holding company operating in the states of Pennsylvania and Delaware. The company offers a variety of products and services like offering loan products, online bill payment services, and others. 

Editor’s Note on PayPal, Netspend, Bancorp Class Action Lawsuit: 

This news report aims to give you the latest news regarding a complaint filed by a single mother with a disability against finance giant PayPal and others for failing to properly inform her of the terms of her card service. She allegedly racked up towering fees on her card. 

Case Name(s) & No.(s): Morehouse v. PayPal, Incorporated, et al.: Case No: 1:21-cv-04012

Jurisdiction: United States District Court Southern District of New York

Products/Services Involved: Bank’s Fees Policy

Allegation(s): PayPal and other financial services companies failed to properly disclose the terms and conditions of their company’s supposed charge-free card services 

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