Hip-hop producer Russell Simmons came under fire last fall when RushCard, the prepaid debit card he had created, locked thousands of customers out of their accounts for more than a week. RushCard’s low-income customer base—furious over their inability to pay bills, fill prescriptions, or buy food—lambasted the company on social media.
Now, after settling a $19 million lawsuit and hiring a new chief executive, RushCard has redesigned its mobile app and introduced new security features, like fingerprint authentication. The company has also inked a deal with Walmart, to improve access to and discounts on prescriptions.
The Consumer Financial Protection Bureau plans to release updated rules later this year around how prepaid cards are advertised and sold to consumers. AH