CarefulBuilder14 wrote:The claim isn't that Amex stole the money - it's that a third party took the money and Amex isn't willing to investigate the allegedly fraudulent transaction or try to recover the funds from the fraudster/merchant. The CFPB has done a lot to improve protections on bank-account-linked debit cards, but Amex Bluebird isn't quite as good - at least not in the event a card isn't properly registered. That may have been part of the OP's problem.
I didn't mean that Amex kept funds. Sorry about the confusion. I meant to say what you said about refusing to refund the charges. But, we don't know a time frame here or any specifics. This just sounds like a baseless rant due to ignorance or lack of due diligence. I still say that I do not believe a company as large as Amex is just ignoring customers. Now, some of these other fly-by-night prepaid cards, I'd say that's possible as many of them disappear or rebrand themselves all the time.
CarefulBuilder14 wrote:It's perfectly possible that the funds could have been stolen from an innocent victim. If the card was used for an authorized transaction with a merchant, then the merchant would have the card info. Either a malicious employee or an outside hacker could get the card information and use it to make a transaction or sell the information to someone else.
I don't necessarily see this as relevant. I understand your point, but this goes for every single card that exists...prepaid, debit, credit...doesn't really matter. This is not specific to prepaid debits. But, if prepaid lenders were just running around ignoring all fraudulent charges and just telling their customers to stuff it, I highly doubt they would be so popular and found in every major grocery/department stores, gas stations, etc.