Jan 18, 2016
Nearly three million holders of RushCard couldn’t access the money on their prepaid cards for two weeks, thanks to a colossal computer glitch.
RushCard, founded by hip-hop magnate Russell Simons, is one of these predatory lenders that preys on people who don’t have the steady stream of income it takes to maintain the minimum balances required by most banks. It offers two-day advances on users’ paychecks. But like many financial products offered to the working class and poor, RushCard comes with a ball and chain attached.
Fees. Lots of fees. There is a $9.95 fee just to acquire the card in the first place. Then there is the monthly account fee of $7.95, and the $1 for every transaction fee oh, and let’s not forget the $1.95 “maintenance fee,” when members don’t spend money for 30 days.
RushCard is making a killing off low-income people.