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REQUEST DENIED

RushCard tried and failed to delay a CFPB investigation into its prepaid card debacle

Producer Russell Simmons walks down Main St. during the 2010 Sundance Film Festival in Park City, Utah.
Reuters/Lucas Jackson
RushCard wasn’t moving fast enough for the government’s liking.
This article is more than 2 years old.

Soon after the RushCard prepaid debit card debacle that saw customers losing access to their money emerged, the Consumer Financial Protection Bureau said it would monitor the situation. RushCard’s parent company, UniRush, quickly felt the government agency was being too demanding.

Early last month, UniRush filed a request (pdf) with the CFPB asking it to narrow some of its document requests (centered around its ill-fated payment processor change) and extend the amount of time it had to answer them (10 days). The CFPB denied that request (pdf) Wednesday (Dec. 2), directing UniRush to meet and confer with bureau enforcement counsel within 10 days of the order “to provide a specific timetable for responding to each interrogatory, document request, and request for written reports, with an explanation of the reason why such additional time is needed.” The  CFPB declined to comment beyond the denial.

“We are committed to working cooperatively with the CFPB and have already begun to produce the documents they’ve requested,” a RushCard spokesperson wrote to Quartz in an email.

Though RushCard has attempted to make amends with its affected customers, including setting up a fund to compensate them, a Yahoo Finance story from November shows that a lot of damage has already been done:

After Yahoo Finance contacted a RushCard representative on Monday, the company sent Coates a check for her total account balance. She has yet to receive a replacement card, but she likely won’t need it. Last week, she opened a checking account at a local credit union.

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