The San Francisco City Attorney’s Office announced a settlement with InComm Payments, the parent company of Vanilla gift cards, that will provide a $1.525 million restitution fund for consumers who lost money after thieves tampered with card barcodes.
Background of the consumer scam
Since 2022, NBC Bay Area and Telemundo Responde have fielded numerous reports of Vanilla gift‑card balances disappearing without explanation. Victims described seeing a decline when trying to use the cards, despite having remaining funds. One Walnut Creek resident, Sydney Polich, said, “I have no idea what happened to it. I knew there was money left on it, but it was declined.”
City Attorney’s lawsuit
San Francisco City Attorney David Chiu filed a lawsuit against InComm Payments, alleging that the company provided “insufficient security for Vanilla cards.” The complaint referenced the NBC coverage and highlighted the repeated consumer complaints. “We heard about this over and over, which is why we filed the lawsuit,” Chiu said. “I’m really glad that we now have a resolution that will hopefully get consumers some, if not all, of the money they lost.”
Settlement details
The agreement creates a $1.525 million fund to reimburse eligible California consumers. To qualify, a person must have purchased or received a Vanilla gift card in the state between November 1, 2019 and September 30, 2024 and been unable to spend some or all of the loaded value. Claimants must submit proof of purchase or loss, such as the card number or serial number, and file a claim by February 19 of next year.
How to apply
Consumers can begin the process at cagiftcardsettlement.com. The site advises applicants to gather any documentation that shows the card’s balance or a complaint filed with InComm, as this can strengthen the claim.
InComm’s response
InComm issued a statement calling the lawsuit “misguided” but expressed satisfaction that the matter was resolved. “We are pleased to have worked with his office to resolve the matter and put the litigation behind us,” the company said.
Impact on Californians
While the fund will not cover every loss, it represents a concrete step toward consumer protection and demonstrates the City Attorney’s commitment to holding corporations accountable for inadequate security measures. The settlement also underscores the importance of vigilance when using prepaid cards and the value of reporting suspicious activity promptly.
What’s next
City Attorney Chiu emphasized that the settlement is part of a broader effort to safeguard Californians from fraudulent schemes. “Our hope is that we can get a substantial number of Californians who were victims of this consumer scam some or all of their money back,” he said. Residents are encouraged to check the settlement website and submit claims before the February deadline.
Original reporting: NBC4 Los Angeles — read the source article.
