Russell Simmons Hit With Class Action Lawsuit Over RushCard

Both Simmons and RushCard have released multiple updates on social media and the company’s web site. According to company, the issue stemmed from a glitch in the computer system when the company decided to change to a new transaction-processing vendor. Daily Mail Online reports:

The class action lawsuit filed today by RushCard users details how beginning on October 12th and continuing – they did not have access to their money.

That left them unable to pay for basic necessities such as food, rent, electricity and gas. Additionally, customers who were unable to pay their household bills – were slapped with late fees.

Those customers who did regain access to their accounts say there were discrepancies, including account balances completely wiped out.

Others were charged fees for their failed ATM withdrawal attempts during the time period the RushCard system was down.

Russell Simmons

The plaintiffs contend the contract they signed for their RushCard say all disputes must be handled through arbitration.

However, they say the provision in the agreement is unenforceable and unconscionable and against public policy.

The suit states, ‘Plaintiff’s and class members were fraudulently induced into purchasing RushCards and depositing money into their RushCard accounts because they were led to believe their funds would be ‘safe and protected’ with unhindered access to these monies.’

They are suing for negligence, fraud, breach of contract and violation of the New York deceptive acts and practices law.

The cardholders are demanding the court order Simmons’ companies to pay restitution to those who suffered harm from not being able to access their cash, a judgement awarding damages and further damages for defendant’s knowing, willful and intentional conduct.

On Friday, Simmons tweeted:

Most operational issues are resolved I’m putting together process to help those that have been damaged by this tragedy stay tuned

— Russell Simmons (@UncleRUSH) October 23, 2015

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