The RushCard chaos of 2015 that left 130,000 RushCard holders from using or depositing funds has been one of Russell Simmons biggest business fails. The prepaid debit card system that was founded in 2003 locked customers out of their accounts when it experienced a glitch in that Simmons said was a “technology transition.”
Aside from being locked out people also reported missing money and direct deposits not being placed.
Now months after RushCard holders learned that technology can turn on you at the drop of a dime, a settlement has been reached that will result in a $20.5 million reimbursement. But unlike Hammer, $20 million can’t hurt Russell.
What was initially reported to be a $2 to $3 million settlement, turned into $20.5 million. UniRush plans to pay $100 to $500 per claim, plus an additional $1.5 million in legal fees. While the number may seem staggering, Simmons is happy to make amends.
“I put aside $25 million,” he tells HipHopDX (May 18). “That was never the problem in my mind… I am going to spend a lot more money than that in the community, in my peacekeeping programs, in RUSH and art education. We’re gonna be in the community in a way that we’ve never been.”
Simmons spends significant portions of this conversation explaining his intent to create a new credit agency that would allow people who rent for a significant period of time to be able to build a solid credit history as well as future innovations he plans to bring to the prepaid space. There’s also an eye opening moment when he reveals that 60% to 70% of new RushCard users are millennials, a drastic detour from the perception that prepaid cards are for aging single mothers.
It’s always good to see people owning up to their mistakes and doing what they can to correct them. But then again, Russell Simmons has never been anything less then the personification of a stand-up guy.
Hit the link to check the interview Simmons gave HipHopDX and see just how the whole ordeal affected him over the past year.