Court Certifies Class of Detainees to Challenge PrePaid Debit Cards

Governments increasingly seem to favor pre-paid debit cards. I’m sure there are reasons, but I once received my state tax refund in the form of such a debit card, and it was highly inconvenient. Stores do not issue receipts letting you know how much credit remains on the card after purchase, so one has to keep careful accounts. Not all stores were equipped to process the cards, and it was hard to zero them out. Here’s an idea. Just send me a check or deposit the money in my bank account. I get it. Some people don’t have bank accounts. Still, they can use check-cashing services, or if they prefer the cards, send them a card.

Plaintiff Samuel Rutherford was incarcerated. Upon his release, he was issued a pre-paid debit card provided by defendant, Central Bank of Kansas City (CBKC). The card was funded with money taken from him upon his incarceration, plus additional funds deposited during his detention. Mr. Rutherford did not apply for or request the card, and his use of the card subjected him to fees, including a $5.95 monthly fee after a thirty-day grace period and ATM fees. Mr. Rutherford sought to certify both a nationwide class alleging violations of the Electronic Funds Transfer Act (EFTA) and a Washington state class alleging conversion, unjust enrichment, and violations of the Washington Consumer Protection Act (WCPA). The national class was to include people who did not already file a claim and receive monetary recovery from a prior case called Brown.

In Rutherford v. Central Bank of Kansas City, the District Court for the Western District of Washington certified two classes. There were no significant issues as to: the numerosity of the class; the commonality of the claims, the adequacy of the named plaintiff; the predominance of common issues, or the superiority of the class mechanism over individualized litigation. The Court found that Mr. Rutherford was typical of a class of users whose cards were pre-activated when they received them. He is not typical of users whose cards were activated upon first use. The motion for class certification was granted with respect to both proposed classes, with the amendment that class members must have gotten cards on the same terms as Mr. Rutherford.