Russell Simmons’ UniRush, MasterCard must pay $13M

Russell Simmons will have to pay up for his prepaid debit card debacle.The Consumer Financial Protection Bureau ordered the hip-hop mogul’s UniRush, as well as MasterCard, to pay $13 million over the 2015 breakdown that kept tens of thousands of customers...

Russell Simmons’ UniRush, MasterCard must pay $13M

Russell Simmons will have to pay up for his prepaid debit card debacle.

The Consumer Financial Protection Bureau ordered the hip-hop mogul’s UniRush, as well as MasterCard, to pay $13 million over the 2015 breakdown that kept tens of thousands of customers from being able to access their money.

The companies will pay $10 million in restitution to customers, as well as an additional $3 million in fines to the CFPB.

“UniRush and MasterCard betrayed the trust of tens of thousands of consumers who rely on the RushCard to conduct and manage their day-to-day finances,” Richard Cordray, the CFPB’s director, said in a statement.

In October 2015, UniRush botched a planned change to use MasterCard as its payment processor, wreaking havoc on customers who relied on the prepaid cards to access their money, according to the CFPB.

The company had about 650,000 users, and about 270,000 of them, or 41 percent, used the cards to receive direct deposits.

“My card was inactive for seven complete days with no information, no calls, no notification, no nothing,” Derrell Ward, a cardholder in Calumet City, Ill., told The Post at the time.

On Jan. 30, GreenDot announced that it would buy UniRush in a $147 million deal that’s expected to close this quarter.

GreenDot has had its own fair share of run-ins with federal investigators, and in 2014 was investigated by a Senate panel.

A spokesman for GreenDot said the company was indemnified from the CFPB’s order.

Simmons, the co-founder Def Jam Records and the star of multiple reality TV shows, said in a statement that the outage was “one of the most challenging periods in my professional career.”

“I cannot thank our customers enough for believing in us, remaining loyal and allowing us to continue to serve their needs,” he added.

“We are pleased to bring this matter to a close,” a MasterCard spokesman said.

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