According to court documents filed last week, RushCard, the prepaid card created by hip hop mogul Russell Simmons, has agreed to pay a total of $20.5 million to customers who were temporarily locked out of their accounts last year. RushCard faced technical issues last October while it was transitioning to another payment processor and the glitch left more than 132,000 customers unable to access their accounts for several days.
The preliminary settlement, which is still pending court approval, includes $19 million to reimburse customers for fees and other costs. The remaining $1.5 million will go toward attorney fees.
The agreement called for RushCard to reimburse customers for any fees they paid from Oct. 12 to Oct. 31, the time that they might have been locked out of their accounts. But some customers might qualify for additional funds.
People who faced other financial setbacks during the time they couldn’t tap into their accounts, such as overdraft charges or late payment fees, can file a claim to be compensated for those costs. Customers can receive up to $100 each if they don’t have the paperwork to support their claims. People with the documentation to prove their losses could receive more, up to $500 each. But in both cases, consumers would need to subtract any other payments they may have already received from the company for those expenses.
“We are pleased to have reached this preliminary settlement which will resolve the claims of our cardholders,” Rick Savard, the chief executive of UniRush, said in a statement. “We believe this settlement fairly compensates our customers who were inconvenienced.”