Russell Simmons' Rushcard Screwed Thousands Of Customers Last Week

Around 68 million Americans are unbanked or underbanked—either living without a bank account, or relying on “alternative,” predatory financial institutions like payday loan shops, check cashers, and prepaid payroll cards. One product on the last category, the Russell Simmons-founded Rushcard—which puts people in a labyrinth of jacked-up transaction fees for the privilege of getting their paycheck two days early—froze thousands of its users out of their accounts last week, leaving them stranded and moneyless during an absurdly protracted period of the company trying to get their system back up after what they’re calling a botched “technology transition.”

Russell Simmons, who in 2011 published a book called Super Rich: A Guide to Having It All, has long defended Rushcard as “empowering” for black and low-income communities, going so far as to say that he will continue to “fight this fight, provide a voice for the voiceless and seek ways to provide financial freedom to those in need.” But Rushcard has become notorious for its fine print contradicting its big promises: it’s got a $20 activation fee, a $10 monthly fee, transaction fees up to $2.50. It doesn’t actually help build credit the way it advertises, it reportedly leaves its users little recourse in the case of identity theft, and its users, when they sign their contract, lose their right to sue under any possible condition.

-Jezebel

I wouldn't be surprised if a class action lawsuit wasn't filed.