First Century Bank Sued Over Fees on Inmate Accounts

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A proposed class action has been filed against First Century Bank, N.A., and Stored Value Cards, Inc. by a Georgia man who claims he was given a pre-paid debit card upon his release from custody and was charged unauthorized fees. According to the complaint, various correctional facilities contracted with the defendants to manage inmate funds. When people are detained at these facilities, the suit claims, their cash is confiscated and deposited into inmate trust accounts. Upon their release, the funds are allegedly returned to them on a pre-paid debit card issued by the defendants.

The plaintiff says he received a debit card loaded with the remaining balance in his inmate account. According to the complaint, he was offered no other option to collect the funds. He alleges that when he began using the card, the defendants deducted various unauthorized transactional fees and a weekly maintenance fee from his account. The suit argues that the plaintiff was not informed of any fees associated with the card and that he had never consented to the deductions. According to the complaint:

“Had [the plaintiff] been given a choice as to how he could receive his funds at the time of his release, he would have never chosen to have them deposited by Defendants on their pre-paid debit cards given the excessive service and transaction fees Defendants automatically deducted without his consent.”