RushCard to create fund to compensate victims of card problems

Russell Simmons called the situation “devastating” in an interview with the Associated Press, and said the company wants to make sure customers are made whole. “I will continue reaching out individually to as many of you as I can”.

The group will give money to customers who incurred costs and late fees while their money was unavailable. Simmons’ Twitter and Instagram accounts became places for RushCard customers to explain their plights and plead for access to their money. RushCard, MasterCard and MetaBank, the custodian bank for the card, will also contribute to the fund, the AP reported. “While the reimbursement and review process will not occur overnight, we will act as quickly as regulators will allow and are already doing so on a case-by-case basis”.

“RushCard pledged that it will reimburse cardholders who experienced financial losses”, the company said in a statement, reports NBC News. “RushCard deserves credit because companies are not always as quick to provide remedies for consumers who are harmed”.

RushCard and Simmons have been consistently apologetic since the troubles began. While all funds are insured by the Federal Deposit Insurance Corporation (FDIC), that wasn’t much help to consumers who were unable to pay their rent or buy groceries and medicine.

RushCard was one of the earliest pre-paid debit cards on the market.

RushCard has yet to provide a schedule when the funds will be executed or what conditions or papers are needed in order for customers to be paid.

“There are a few real questions as to (whether) consumers of prepaid cards have the same rights to access their own money as the rest of us do”.

Founded by Simmons in 2003, the RushCard can be used to make payments and withdraw cash at ATM machines without being linked to a traditional bank account.