Russell Simmons To Pay RushCard Users $19 Million
Late last year we reported that Russell Simmons was in a lot of hot water after his shady Rushcard company was stealing money from poor cardholders. Simmons has agreed to pay at least $19 million to compensate users and fix his brand according to TownHall reports:
The technical fiasco caused tens of thousands of RushCard customers, who are largely poor and minorities, to be unable to access their money for as long as two weeks. Complaints from the outage clogged up the company’s customer service lines for days.
According to the agreement filed in a New York court as part of a class-action lawsuit, RushCard will pay at least $100 to each user who could not access their funds. That amount can increase to up to $500 if the customer can document any losses they might have experienced due to the outage.
Including earlier fee reimbursements the company has made, RushCard will have paid out more than $19 million, a company spokesman said.
“We are pleased to have reached this preliminary settlement which will resolve the claims of our cardholders,” Rick Savard, CEO of Unirush, the parent company of RushCard, said in a statement.
RushCard’s problems started in mid-October, when the company switched payment processors. The transition was botched, and resulting problems caused thousands of RushCard accounts to be frozen.
No more shady business or nah?