3 On Your Side: RushCard To Compensate Customers Who Couldn't Access Money
PHILADELPHIA (CBS) -- It's called the RushCard. A popular pre-paid debit card backed by hip hop mogul Russell Simmons. Customers say that when a technical glitch kept them from getting their money, RushCard wasn't in any rush to help them out. 3 On Your Side Consumer Reporter Jim Donovan explains.
For two weeks people had issues after RushCard switched to a new payment processing system. RushCard tells us that it's back up and running but a small number of accounts remain inactive.
The RushCard website promotes the fact that customers can get their money up to two days sooner with direct deposit. But after a technical glitch prevented people from getting their cash, angry customers took to social media.
The company is still trying to fix the problem for some. Shannon Chick sounded off on Facebook. She wrote, "Two weeks and I can't access my account. Feeling frustrated I can't access my money for bills & everyday use. RushCard give me my money!"
Meanwhile, Russell Simmons, founder of RushCard posted a videotaped message on Facebook that said in part, "We know who you are and know you are facing tremendous challenges."
RushCard blames the glitches on new technology, but consumer credit experts aren't so sure that's the case. Paul Oster, CEO of Better Qualified, says, "technical difficulties are solved within a couple of hours, not a couple of weeks." Some think RushCard may have been hacked and might not even know it yet. Oster says, "Right now, it's about Russell Simmons doing the right thing, about RushCard live doing the right thing."
RushCard says it will create a multi-million dollar fund to compensate those who can show they incurred late fees, or a financial setback as a direct result of the technical problems. In addition from November 1, 2015 to February 29, 2016, RushCard says its customers can use their cards without incurring fees from the company's fee schedule.