RushCard has agreed to pay $19 million to settle the class action suit, which was brought on by a technical error. The 2015 fiasco prevented customers from using their RushCard for several days (in some cases, one week). Customers dragged Russell Simmons for days on social media, which resulted in a lawsuit. Last week, RushCard was ordered to pay back $19 million to customers affected by the card outage. In addition to the settlement, which is awaiting judge’s approval, the company has to pay $1.5 million in attorney fees. According to the NY Times, this amounts to the number of times the prepaid card provider promised to repay customers who incurred fees from bounce checks or other inactive account-related fees. The settlement divided will payout approximately $100 – $500 to each of the 300,000 customers that were affected. The cardholder’s attorney, John Yanchunis (www.classaction.com), is very pleased with the outcome. “We are very pleased with the result and the speed by which RushCard and the other defendants were able to settle this matter.” Card supplier, Metabank, and Russell Simmon’s Rush Communications were also named in the lawsuit. Photo credit: Lee Suzuki/Chronicle
