Russell Simmons’ Rush Card Investigated Over Hidden Fees
Rush Card Under Investigation
Subpoenas have been issued to Russell Simmons’ Rush Card and four other prepaid card companies by the Florida Attorney General’s office who is investigating whether the card companies are forcing their users into paying hidden fees on every purchase.
Florida Attorney General Pam Bondi through the Economic Crimes Division, is looking into whether these banking companies, duped their card owners by promising to help raise their credit score.
First Data Corporation, Green Dot Corporation, Account Now, Inc., Netspend Corporation, Unirush Financial Services, LLC were also named in the subpoena.
Since the court order was issued, reps for the Rush Card have released a statement which reads:
“RushCard is the solution for people who want affordable financial services that they can customize to suit their needs. As I look at the payments landscape, I see the banks as the large record chains and my RushCard is looking a lot more like iTunes. I welcome the public debate because the more educated the consumers are the more successful we become.”
Over 50 million people own Russell Simmon’s pre-paid Visa. The Rush Card’s site claims their card owners pay less than half of the fees that most banking institutions charge.