Some Californians still haven't received their Middle Class Tax Refund. Attorneys are now suing

Stand-up comic Pete George might be funny on stage, but trying to get his Middle Class Tax Refund has been no joke.

“I just don’t like people getting away with things like this, or companies getting away with it,” he said.

George qualified for a $350 refund. 

“It’s nice, it’ll pay for five lattes,” he joked.

George was supposed to get his debit card in January, but it never came. So he called Money Network, the company the state hired to manage the program. 

“And they said, ‘Oh you’ve cashed it in,’” he said.

George said Money Network told him the card had been drained at a nearby ATM. So, he filed a dispute right away but said Money Network has been giving him the runaround.

The NBC4 I-Team first reported on this issue months ago, shortly after the debit cards were mailed. Complaints started rolling in – consumers said they never received their card, or if they did, the money on it was gone. Experts told the I-Team sophisticated fraudsters were swiping the money off the cards electronically.

Now, Lorraine Weekes, with the law firm Kneupper & Covey, is suing Money Network. 

“People started contacting my law firm, saying, ‘Hey, I need help. I’m supposed to get this Middle Class Tax Refund,’” she said.

According to Money Network’s $25 million contract with the state, it’s supposed to “prevent fraud at a success rate of 99% or higher.” Weekes doesn’t think that’s happening. 

“I think one time I waited (on hold on the phone) an hour and a half,” George said.

Weekes said residents like George can’t reach Money Network to report fraud.

“If you’re hanging up on people, making people wait extremely long times to report fraud, then I think those numbers are going to be underreported because it’s virtually impossible for a normal person to get through on the phone and report fraud,” Weekes said.

The contract also required Money Network to put chips on the cards, making them more secure. But many cards don’t have them. The state told the I-Team that was due to supply chain issues, but Weekes said that’s no excuse. 

“Our point is you don’t have to take on this contract for millions of dollars from California taxpayers. But if you volunteer and say, ‘We’re going to do that,’ then you need to do a good job and do what you say you’re going to do,” she said.

In a statement to the I-Team, Money Network said it doesn’t comment on pending litigation, but it “takes its obligation to serve California residents seriously.” It also said it’s “successfully distributed more than 9 million debit cards” and it’s “limited the fraud rate to an amount well below the contractual requirement.”

“Whether I get the money or not, it’s OK, whatever. Of course it’s always nice to get what belongs to you,” George said.

If you still haven’t received your money, you can find information about the lawsuit here.

The state auditor is looking into the program, too. It told the I-Team it will wrap up its report later this year.