Pursuant to the Electronic Funds Transfer Act ("EFTA"), 15 U.S.C. §§ 1693a et seq., JPay has refunded fees incurred by JPay Progress Prepaid Mastercard® (“Progress Card”) cardholders who were released from facilities in California, Colorado, or Georgia within the last 12-months.
The California Department of Corrections and Rehabilitation, Colorado Department of Corrections, and Georgia Department of Corrections may require offenders upon release to receive government-sponsored financial assistance (“gate money”) on a debit card such as the Progress Card and thereby establish an account as a condition of the receipt of a possible government benefit, which may violate 12 CFR § 1005.10. While there is doubt as to whether gate money could constitute a government benefit and as to whether these states require offenders to receive their gate money on a Progress Card, JPay has nevertheless, in recognition of this issue, been refunding fees incurred by the previously described cardholders.
Eligible cardholders do not have to do anything further to claim their reimbursement. Funds are being automatically transferred to Progress Cards, and may appear in the account history as “EFTA Refund.”
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