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CFPB On The RushCard Prepaid Card Case

In the wake of continued difficulties prepaid RushCard holders have had accessing their funds, Consumer Financial Protection Bureau Director Richard Cordray weighed in on the matter on Friday (Oct. 23).

Noting that many consumers using the card had been unable to withdraw funds for more than a week, Cordray issued a statement that contended “the CFPB is taking direct action to get to the bottom of this situation that may have harmed thousands of innocent consumers already.”

The executive noted that he had spoken with Rick Savard, the chief executive officer of UniRush, which issues and services the RushCards, in order “to make sure that action is being taken” to address the ongoing situation, including “the cascading financial effects” of the inability of funds to be withdrawn and used. Further, stated Cordray, the CFPB stands ready to “use all appropriate tools at our disposal to help ensure that consumers obtain the relief that they deserve.”

In tandem with discussions with UniRush, Cordray said, the CFPB has contacted and held discussions with other regulators, including the Office of the Comptroller of the Currency and the Federal Trade Commission, in a dialogue that will seek to make consumers whole. In the meantime, said Cordray, consumers affected by the ongoing card freeze should file complaints with UniRush or with the CFPB.

As has been widely reported, a significant number of workers (though as of yet not clearly defined) have been impacted by a glitch in the RushCard system. That glitch has made it impossible for cardholders to access their paychecks, which in turn have been loaded onto the cards. Russell Simmons, who founded RushCard, had, alongside other executives, issued a statement last week that said the company was addressing the technical issues as quickly as possible. Earlier last week, projections by the company had been that it would take “a few days” for the system to get back online; resolution had not yet been achieved by week’s end.

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