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RushCard is starting a fund to pay back its customers

Russell Simmons talks to reporters as he arrives for the 2011 White House Correspondents' Association dinner.
Reuters/Jonathan Ernst
Paying up.
By Melvin Backman
Published Last updated This article is more than 2 years old.

The scandal-plagued RushCard just announced a fund to reimburse customers who lost access to funds placed on the prepaid cards earlier this month.

In an AP interview announcing the fund, hip hop mogul Russell Simmons, who promotes the pre-paid debit card, said he has thus far been paying customers back out of his own pocket.

“This whole situation has been devastating for them, and we want to make sure they are made whole,” he said.

In a statement, RushCard did not disclose the size of the planned fund or any specifics of how claims would be processed, though it told the AP that its partners RushCard-issuing MetaBank and payments processor MasterCard would be contributing to the fund. Though the company has not detailed what exactly went wrong in its transition to MasterCard, it said it is still investigating.

The company also said it has fixed all the card’s issues, though complaints about still abound on social media.

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