Russell Simmons hit with class action lawsuit for fraud over RushCard fiasco
Hip hop mogul Russell Simmons is facing a class action lawsuit after the disastrous problems that his RushCard program faced recently.
The problems began when a “glitch” resulted in several cardholders being blocked from accessing their money in their accounts, while other cardholders have even said that some of their money was missing. What’s worse, many of the cardholders could not afford to go without the money in their accounts during the week and a half it took to get the program back online, and some had to choose between eating and paying utilities or rent.
The lawsuit demands that RushCard pay damages and restitution for the period of time in which they were without money, citing everything from late fees for the bills they were not able to pay to failed ATM withdrawal fees. They also cited account balance issues after the program was brought back online, in which, in some cases, account balances had disappeared.
The suit states, “Plaintiff’s and class members were fraudulently induced into purchasing RushCards and depositing money into their RushCard accounts because they were led to believe their funds would be ‘safe and protected’ with unhindered access to these monies.”
The RushCard program was launched in 2003 and has been a viable alternative to many families in lower income brackets that do not usually qualify for traditional banking plans.