The federal Consumer Financial Protection Bureau is investigating Russell Simmons’ prepaid debit card after a glitch blocked user access for nearly two weeks, according to Rolling Stone.
Richard Cordray, director of the agency, said Friday he spoke to RushCard CEO Rick Savard to explain that the bureau “is prepared to use all appropriate tools at our disposal to help ensure that consumers obtain the relief that they deserve,” writes the publication.
He said his workers are communicating with regulators at the Office of the Comptroller of the Currency and the Federal Trade Commission “to ensure a comprehensive response that addresses the situation quickly and holds accountable all of the parties involved to make consumers whole,” the report says.
Savard said in a statement Friday that the company is working to assist card holders, who are mostly low-income Americans without regular bank access.
“We have a handful of people left who are still not able to access correct information about their accounts,” the statement reads, according to Rolling Stone. “Their funds are there but their information is still inaccurate. We are working to contact them individually to assist them with their needs.”
Problems occurred when the prepaid RushCard debit card, which some have argued offers predatory fees to low-income residents, failed when it switched from an old transaction processor to a new one, prompting users to take to social media to complain about losing access to their paychecks, government benefits and electronic funds transfers, the report says.
Source: The Root | LYNETTE HOLLOWAY