RUSHCARD CATASTROPHE - Payment Processing News

RUSHCARD CATASTROPHE

Prepaid

The RushCard catastrophe affected more than 132,000 consumers, without access to their prepaid card accounts to get their paychecks, buy groceries, pay bills or pay rent for days.

The total number of customers, and a tally of how many people were affected, haven’t previously been disclosed because it is a privately held company.

Senator Brown urged UniRush on Monday to cooperate with an investigation from the Consumer Financial Protection Bureau, which has requested documents and other information to determine what caused the outage and what the company was doing to compensate consumers.

The card company petitioned to push back the deadline for compiling the information to Jan. 15, from Nov. 10, calling the request broad and overly burdensome, but the bureau denied the request last week.

The prepaid card company announced in October that it would create a multimillion-dollar fund to compensate customers who faced financial issues after being locked out of their accounts.

RushCard spokesman said Monday that the company has started to compensate customers, even hand delivering cash in some cases, but he wouldn’t specify how many people had received payments.

RushCard is a Prepaid Card Company  co-founded by Russell Simons.

 

December 9th, 2015 by