8/27/2023 0 Comments Rushcard sign in“Like other celebrity cards, this card has earned a shady reputation.” “This is a card with predatory practices like charging people every time they swipe,” Valenti explained. Judging by the user profiles of angry customers posting comments on the RushCard Facebook page, many of those cardholders are African-American.Īlso Read: Anti-Defamation League Outraged By Russell Simmons Comparing Horse Carriages to Holocaust, Slavery District Court in New York, RushCards are mostly used by “poor and working class Americans” who don’t have traditional bank accounts. Simmons has faced intense scrutiny since his pre-paid Visa debit cards stopped working for thousands of customers earlier this month, with the New York Times, Washington Post, Wall Street Journal and several urban blogs covering the controversy ad nauseam.Īccording to a class action lawsuit filed Friday in U.S. 30, to access government benefits directly deposited into their RushCard accounts, including Social Security and veterans benefit payments. Although he admitted people may have to wait until Oct. “We can announce today that all major functionality, including 2 day advance direct deposits and card-to-card transfers, is restored,” Simmons posted on Twitter, Instagram and the RushCard Facebook page Monday. Simmons continued his damage control blitz across social media this week, telling cardholders that the RushCard fiasco is fixed.Īlso Read: Russell Simmons Says His Debit RushCards 'Working' After Lawsuit, Federal Investigation “This is a business of greed and exploitation of ignorance.” “ Russell Simmons has lied to the African-American community for years telling people that RushCard helps you build credit,” Ryan Mack, financial expert and contributor to Financial Juneteenth, a site dedicated to empowering the black community, told TheWrap. “Reputation is a hard thing to build, but easy to lose.”Īnother expert said that Simmons had done a grave disservice to the African-American community who he was purporting to help. “He should be very worried right now,” Joe Valenti, director of consumer finance at the Center for American Progress, told TheWrap. But the hip-hop mogul’s problems are just beginning. Rapid! has 2,500 corporate customers who use the card as an option to pay employees who may not have regular bank accounts.Russell Simmonssays the technical issues plaguing his pre-paid debit RushCard are over. Streit said the Rapid! payroll card also made the company attractive. This includes the investigation still ongoing by the Consumer Financial Protection Bureau. “Having his name associated with RushCard is a big reason why we are buying it,” Streit said in an interview.Īs part of the transaction, Streit said Green Dot will not be liable for any settlements tied to the 2015 incident. Green Dot plans to retain the RushCard name and brand along with its other products. Green Dot CEO Steve Streit said he and Simmons had on-and-off conversations about an acquisition going back years.ĭespite RushCard’s 2015 problems, Streit said Green Dot is buying RushCard largely for the name recognition as well as its sizeable customer base of 750,000 people. “This whole situation has been devastating for them, and we want to make sure they are made whole,” Simmons told The Associated Press in 2015. Simmons, the Chairman and CEO of Rush Communications and co-founder of the iconic Def Jam Recordings, apologized and took personal responsibility, and later used some of his personal fortune to cover customers’ expenses. People told of being unable to purchase necessities for their children, and customer service lines were tied up for weeks. RushCard is perhaps best known for a software upgrade that went haywire in 2015, cutting off more than 400,000 customers from their funds for days and even weeks.
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