Released Inmates Get Trial in Debit Card Class Action

Jan. 9, 2019, 8:15 PM

More than 80,000 people who received prepaid debit cards after being released from correctional facilities in Ohio can go to trial on claims the debit cards violated federal and state law.

The class action accuses Stored Value Cards Inc. and Republic Bank & Trust Co.—which, respectively, managed and sponsored the debit card program—of issuing unsolicited debit cards in violation of the Electronic Funds Transfer Act. A federal judge Jan. 8 denied the companies summary judgment on this claim, finding that the pooled custodial account used for the inmates’ cards qualified as a “consumer asset account” subject to the law.


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