Why is Apple still working with Green Dot for Apple Cash?

In my opinion Green Dot does an excellent job. You obviously have a private agenda that’s at odds with the terms and conditions for these communities.

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If you do not like Green Dot Bank, then I would suggest to not use Apple Cash. Apple is not a bank and cannot offer the service themselves. They also have no decision making rights with any of the users accounts as that would violate the banking regulations that are enforced on the banks. I also don't see a line up of banks that are interested in taking on millions of customers for little money.

In my experience, I have had zero problems with Apple Cash and there has never even been any need to contact Green Dot bank. It has worked flawlessly when getting "free" cash from Apple Card purchases and spending that money any location that Apple Pay is accepted.

Joe_Seattle wrote:

I’m not pushing a “private agenda.” I’m an Apple customer who recently suffered fraud through Apple Cash, and I’m now left with a perpetually locked account, no access to funds, and zero resolution from Green Dot — a company Apple chose as a partner.

Not sure what fraud you are referring to, but of course you would never send money to a person you do not know. That recommendation by Apple goes far beyond Apple Cash and even includes every other cash app and also Gift Cards. There are no protections with these cash transactions.

As with any complaint you have with a bank, you always have the option of filing a complaint with the CFPB where in most cases, you will get a response in 15 days.

https://www.consumerfinance.gov/complaint/

You were involved with fraud. The bank doesn’t want you as a customer. Banks are private businesses and don’t have to do business with you, me, Jim or anyone else. You pose a risk that is unacceptable. This is what’s known as de-banking. It happens, learn from the mistakes and move on is my best advice. The chances of CFPB responding positively to this very slim. in fact it was announced yesterday that its director has ordered that about 90% of the current investigations they’re involved be closed with no action. It’s the current climate in Washington DC.

“(iii) if you breach these Terms or any other agreement with us regarding the Services, including, without limitation, by using the Services for any unlawful purposes; (iv) we have reason to believe there has been or may be an unauthorized use of your Apple Cash Account; (v) we are unable to verify your identity or authority to use the Services to our satisfaction; (vi) your Apple Cash Account is not in good standing; (vii) we believe that your use of the Services could expose us, Apple, or other persons involved in providing the Services to increased risk or be placed in a false or derogatory light; (viii) your Apple ID is suspended or terminated for any reason or ceases to be in good standing with Apple; (ix) we have reason to believe that you are using the Services to facilitate, encourage, or promote illegal activity, hate, violence, intolerance, fraud, or otherwise objectionable content or activities; or (x) we believe your use of the Services does not comply with applicable law. Our election to exercise the foregoing right to suspend or terminate your access to and use of the Services is in addition to any other right or remedy that we may have under these Terms or otherwise. Our decisions may be based on confidential criteria that are essential to our operation of the Services, management of risk, and protection of Bank and other Users. We may use proprietary fraud and risk modeling when assessing the risk associated with your use of the Services. You understand and agree that such action is reasonable for us to take in order to protect us from loss and ensure the security of the Services. We reserve the right in our sole discretion to grant or deny reinstatement of your use of the Services.”

https://applecash.greendot.com/termsconditions/

I’m happy to explain each subsection (3, 4, 5, 6, 7, 8, 9). If you want an explanation of each subsection or one in particular, just ask. But again, you’re being de-banked. Wikipedia has a good article on de-banking. 

Most people believe none of what I’ve written applies to them. They believe the bank made a mistake in identifying them. Am I wrong? 

Te responsibility for providing positive proof is the account holder, you. If there is a mistake in the information the bank receives and uses to verify the information you provide, it falls upon you to correct the mistakes with the supplier. The bank has no reason to doubt the source of the background information on you the bank receives. You, on the other hand, could be a scammer, money launderer, etc. If information doesn’t match, you need to fix it. 

Where to go from here: File a complaint with the CFPB. They’ll do an investigation, and if they find cause, order the bank to contact you and re-verify your personal information. If a mistake was made on the bank’s end, they’ll typically reopen your account and offer a small compensation of maybe $25. 

Ask questions, seek clarification, and answers. The link to file a complaint is below. In the past, these things were resolved in 2 to 4 weeks, at the most. Given the current political circumstances, I’d expect review and resolution in 2 to 3 months. 

If you have a complaint about a prepaid account, call the Consumer Financial Protection Bureau at 1-855-411-2372 or visit cfpb.gov/complaint.

https://applecash.greendot.com/termsconditions/

Joe_Seattle wrote:

Just to help broaden awareness around Apple Cash and fraud risks — not all cases involve someone being tricked into sending money to a scammer.

Another serious scenario is device theft. If your iPhone or other Apple device is stolen, and the thief can gain access to your Apple Pay or Apple Cash (especially if biometrics or passcodes are compromised), they can initiate unauthorized transfers directly from your account. That’s not a case of the user making a poor judgment call — it’s a security breach and unauthorized access.

Even after quickly reporting the fraud, Green Dot (the bank behind Apple Cash) has denied claims, and left accounts permanently locked, even when these cases are covered under Federal Law.

Same happens for a lost wallet, lost payment card, or other such. The contents can vanish.

As for a lost iPhone with a compromised passcode, Stolen Device Protection can reduce some of that risk, allowing the owner to mark the device as lost before changes become permissible by the thief. So too does configuring and using Face ID or Touch ID, and moving to a more robust passcode or password.

And banks and most other businesses can refuse to do business with a customer, and that for many reasons. Those reasons can include anything covered by US PATRIOT Act, fraud, prohibited or embargoed transactions, among many other applicable regulations.

Joe_Seattle wrote:

Another serious scenario is device theft. If your iPhone or other Apple device is stolen, and the thief can gain access to your Apple Pay or Apple Cash (especially if biometrics or passcodes are compromised), they can initiate unauthorized transfers directly from your account. That’s not a case of the user making a poor judgment call — it’s a security breach and unauthorized access.

Let's be real, biometrics are not compromised. The only way a person gains access to a device is if you give them your Passcode and they have physical access to the device. That in no way is a security breach and is a poor judgement call by giving that person your passcode. If your Passcode is 1111 or 1234, I would hardly consider that a security breach either and would also contend that it is a poor judgement call. The device will automatically lock after too many failed guesses, so the odds of a thief correctly guessing your Passcode are basically nil.

Joe_Seattle wrote:

That’s the path now.

Yep, that is what I would do.

A special note to others that use any cash app including Apple Cash, NEVER send money to someone you do not know. There are many scammers that commit fraud by making false claims and you WILL lose your money. That is not the banks fault, that is your fault even though you were duped. Those same scams have convinced people to send them Gift Cards too and no matter how much effort is put into educating consumers to not do it, you still come across people who have done it and blame Apple, Google, or any other company that represents the Gift Cards they purchased.

“Even after quickly reporting the fraud, Green Dot (the bank behind Apple Cash) has denied claims, and left accounts permanently locked, even when these cases are covered under Federal Law.”

Exactly what Federal Law are they in violation of? I can’t think if one, but you seem to know more than someone that worked in the financial industry for years.

If you want to learn how and when you’ll be able to recover your funds, please let me know. always happy to explain.

Let’s set the record straight. The $44 million fine was for a relationship another Green Dot Bank partner, WalMart, has with H & R Block and misleading and false advertising surrounding free tax preparation that wasn’t free. It has nothing to do with the matter at hand, Apple Cash and the alleged fraud and withholding of funds. You’ve dredged up something and made false claims to misrepresent how they resolve disputes. I can see why Green Dot no longer wants you as a customer.

How Regulation E applies to remote access devices locked with biometrics is a probable gray area and will be the issue. Reg E requires you to notify the bank within a timely manner. But assuming you notified Green Dot or Apple within 60 days, the bank seems to be in compliance.

Reg E requires the following; Green Dot discloses fees and terms and conditions when you apply to open the account. A link to the T&C is provided in the Apple Wallet. You have access to a complete history of transaction in the Wallet and/or by contacting the bank or Apple. Green Dot has an error and resolution process and has a limited time to investigate and render a finding. Was a decision rendered within 45 days? They also should have provided a written or electronic copy of their decision. I’m assuming you received such notification as you’re here seeking approval for your position in a public forum. Regulation E requires all the above and the bank seems in compliance.

The gray area is the access the fraudsters had via Facebook ID and/or passcode. I hope you get very good representation because poking a hole in how your device was compromised is at the root of their decision. You’re going up against the very protection that electronic wallets, in particular Apple Wallet, provides. Good luck. The banks position will be you failed to safe guard your credentials and they can’t be liable for your negligence and incompetence.

Now, as far as recovering funds, it’s simple. Your account is locked and your access to the account is restricted. This was a necessary step to safe guard all parties involved. Your funds will be escheated (transferred) when the laws of your state of residence allow Green Dot Bank to declare your account inactive or abandoned. At that time, funds are escheated to your state’s unclaimed funds account. The process is governed by state law and generally transfer occurs after 6 to 24 months, but a few states may require longer. Once the state has possession of the funds you can file a claim with the state for ownership of the funds. Depending on the state, the process is generally completed within 3 to 6 months. Each state has various provisions for determining legal ownership of the funds. You should be able to find a copy of your state’s requirements online.

In regard to my position with a bank, I never spent a minute behind a teller window. Think much, much higher.

If you have questions, I’m happy to answer any and all questions you may have. Hopefully, in a year or less you’ll have your funds and have moved on, having learned a valuable lesson.