The CFPB announced it has fined the payment companies MasterCard and Russell Simmons owned UniRush $10 million
The CFPB announced it has fined the payment companies MasterCard and UniRush. The Consumer Financial Protection Bureau claims UniRush system had breakdowns on reloadable prepaid RushCards that left customers unable to access their money.
Customers began having problems in October of 2015 problems when UniRush started to use MasterCard as its new payment processor.
RushCard customers use their cards to receive a direct deposit from an employer or for government benefits. Prepaid cards, such as RushCard, are popular among consumers who don’t use traditional banking services.
Tens of thousands of consumers were affected because of “preventable failures” during that switch according to the CFPB. Nearly 830 RushCard customers filed complaints with the Consumer Financial Protection Bureau.
Lauren Saunders, the associate director of the nonprofit National Consumer Law Center told MarketWatch:
RushCard and MasterCard will pay $10 million in restitution to customers because of these problems. The amount customers will receive varies on the type of problems they had with their cards.
Those who had their paycheck deposits delayed will receive $100 and those who had their paycheck deposits wrongfully returned to their employer will receive $250. The two payment companies also have to pay a $3 million fine to the CFPB.