RushCard Unavailable Funds Class Action Lawsuit

Several plaintiffs have filed a class action lawsuit against financial conglomerate UniRush and subsidiaries. The class members include holders of RushCards, which are pre-paid Visa cards on which customers load and withdraw funds at ATMs, online, and in stores, or wherever one may use a debit card. The suit contends that due to a system update, the “temporary” period of five hours during which some customers were warned they could not access their accounts turned into days. Some claim they have never regained access. The plaintiffs assert they were denied the ability to pay for their basic necessities, causing immense hardship.

According to the RushCard website, the cards began being issued in January 2003. Their inception was the result of an idea by founder Russell Simmons, who was troubled by the lack of options for people who do not have access to traditional banking options. Simmons recognizes the RushCard customers tend to be poor and working-class, and the idea was to provide these families with an affordable and convenient way to store and access their funds. Like a traditional checking account, a RushCard customer can have their employment wages directly deposited into their RushCard account, saving them the time of waiting in lines at check-cashing stores.

On October 11, 2015, some RushCard customers received a warning that a system update was pending for the following day, from 3 am to 8 am, and accounts for some may be inaccessible. Yet, class members remained locked out of their accounts for several days, or longer. Those who have regained access have noted discrepancies in account balances, including funds that have completely disappeared. RushCard customers were also charged balance inquiry fees for their failed ATM withdrawal attempts during the period of lockdown.

Several plaintiffs in the complaint detail the hardships they have faced as the result of the RushCard failed system update. One customer could not pay her electrical bill and her power was disconnected. Another had to choose between feeding her children and paying for gas to get to work. Opting for food, she missed three days of work. RushCard customers were forced to make severe choices that nevertheless resulted in destitute circumstances and continued loss of money.

Allegations in the class action suit include negligence, fraud and misrepresentation, and breach of contract by UniRush against its customers.

 

Article Type: Lawsuit
Topic: Consumer
Tags: Debit Card, Unfair Services, Your Bank