Rush Card Owner Russell Simmons Will Pay At Least $19 Million To Rush Card Users
|Rush Card Owner Russell Simmons Will Pay At|
Least $19 Million To Rush Card Users
The prepaid card is often marketed to and used by low-income minorities, many of whom don’t have access to bank accounts and often live from paycheck to paycheck.
Without access to their money, these RushCard customers were unable to buy food, pay bills, and pay for gas to get to their jobs.
remaining $1.5 million will go toward attorney fees.
“The company recognized that their service had caused frustration and unhappiness and damages [to cardholders],” said John Yanchunis, the lead attorney representing the plaintiffs in the class-action suit.
The card’s parent company, UniRush, is not out of hot water yet. It is currently under investigation by the Consumer Financial Protection Bureau; representatives were ordered to provide documents about the cause of the glitch. A spokesperson for the Bureau declined to comment on any potential ramifications.
Simmons has repeatedly apologized that his company left so many account holders in a financial lurch. He eventually said that he would create a fund to help those customers most affected.
In the agreement, filed as part of a class-action lawsuit in New York, RushCard is agreeing to pay each user that couldn’t access their funds $100, with the amount increasing to $500 if they can prove they experienced a loss as a result of the outage.