Tuesday, November 10, 2015

A Month After RushCard's Failure, Many Apologies But No Compensation

In late October the company said it would launch a fund to help those affected by its catastrophic outage. There’s been little word since, but complaints keep rolling in.

RushCard / Via rushcard.com

RushCard, the prepaid debit card company co-founded by Russell Simmons, has made headlines for declaring its catastrophic system failure is over, and for promising a multimillion-dollar fund to compensate customers who suffered financial losses.

But almost a month after customers first began reporting their cards were not working, and two weeks after RushCard said "all major functionality" was restored, customers are still posting to social media about missing or inaccessible funds and delayed paychecks. As for the reimbursement fund, RushCard said on Oct. 29 that it would share details "pending review by financial regulators," banking industry advisers, and community leaders — but as of Nov. 9, no further information has been made available.

Regulators say the company is free to launch the fund whenever it's ready. The Consumer Financial Protection Bureau told BuzzFeed News that RushCard doesn't need its regulatory approval to start making "full and immediate remediation to all consumers that were harmed."

RushCard's issuing bank, MetaBank, is regulated by the Office of the Comptroller of the Currency. That regulator told BuzzFeed News that since RushCard, not MetaBank, would be handling the compensation, the fund does not require its approval prior to launch.

"When the plans for the fund are completed, we will notify all impacted card holders," a RushCard spokesperson told BuzzFeed News.


View Entire List ›


via IFTTT

No comments:

Post a Comment