Today, we took action against Mastercard and UniRush after preventable technological breakdowns in October 2015 left tens of thousands of RushCard users unable to access their money and without customer support. RushCard is a prepaid card advertised as a way to get direct deposits, including government benefits or payroll funds “up to two days sooner” by allowing deposits of that money onto the card. Mastercard Payment Transaction Services is the payment processor for the RushCard.
In the weeks following this service disruption, we received more than 800 complaints from RushCard users about the devastating impact it had on their personal finances. We found that Mastercard or UniRush:
Given these findings, Mastercard and UniRush have been ordered to pay an estimated $10 million in restitution to tens of thousands of harmed consumers, create a plan to prevent future problems, and pay a $3 million civil penalty to the CFPB. Affected consumers are not required to take action to get restitution.
If you’re a current prepaid card or account user, we have information and tips to help you make the best financial decisions for you. You can review our website to learn more about your options and rights with prepaid accounts or scan Ask CFPB to see answers to commonly asked questions about prepaid cards.
This is just the latest action we’ve taken to ensure that prepaid card and account users — and all consumers — can have confidence in the financial services and products they use. Later this year, our rule on prepaid cards and accounts will go into effect. With this rule you will get clear, upfront information about your accounts so you can know before you owe and shop for the best deal. The rule will also make sure prepaid accounts are safer to use —whether you’re swiping at the register, shopping online, or scanning your smartphone.
This article by was distributed by the Personal Finance Syndication Network.