Prepaid RushCards don’t work

November 2, 2015 by

Consumer Protection

Consumers who use RushCards to purchase groceries, gas and pay for other expenses recently were unable to use their cards for cash withdrawals or purchases, and some reported that their account balances did not include recent pay deposits and reported erroneous balances.

RushCards, an alternative to traditional banking, was founded by hip-hop legend Russell Simmons. While RushCards was intended to offer convenience, users are charged various fees including an activation fee of $3.95 to $9.95 and transaction fees of either $1.00 per transaction (up to $10 a month) or a $7.95 monthly charge for unlimited transactions.

Numerous RushCards users unsuccessfully attempted to contact customer service regarding their access issues while some that were able to get through were informed that their accounts could not be located.  The company issued a statement claiming that only “a small number of accounts are still in an inactive state.”

The Consumer Financial Protection Bureau (CFPB) proposed stronger regulation of the prepaid card industry, but they are not yet effective.

 

 

Categories: Consumer Protection

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Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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