3 On Your Side: RushCard Customers Can Look Forward To Getting Paid
By Jim Donovan
PHILADELPHIA (CBS) -- RushCard. It's a popular pre-paid debit card backed by hip hop mogul Russell Simmons. But when customers were locked out of the their accounts last October, some said RushCard didn't rush to help them out.
In today's 3 On Your Side consumer report, customers can finally look to forward to getting paid.
It was a botched computer conversion last October that left thousands of RushCard customers unable to access their cash, some for up to two weeks.
At the time, Russell Simmons, founder of RushCard posted this to Facebook:
"We know who you are and know you are facing tremendous challenges," said Simmons.
Now RushCard has agreed to settle a class action lawsuit with cardholders over the incident. When everything is wrapped up, the company says it will have paid out more than 19 million dollars.
As part of the settlement RushCard will pay at least $100 to each user who couldn't access their funds.
The amount can increase up to $500 if a customer can document additional losses due to the outage.
The RushCard settlement could involve as many as 300,000 people and is subject to court approval.