Popular US prepaid debit card hit by days-long glitch

A prepaid debit card founded by hip hop pioneer Russell Simmons and popular with poor Americans has experienced days-long problems that has left many low-income customers in the lurch.

"We are still working through all of @RushCard's problems. We have made progress, but see that there a number of people still affected," Simmons tweeted Thursday.

The problems—including cards being made inactive and the return of direct deposits to payroll or government benefits administrators—arose in the wake of an October 12 scheduled maintenance and "technology transition," the company said.

"Unfortunately, the transition did not go as planned and some of you experienced hardship as a result," RushCard posted on Facebook.

Since then, customers have taken to social media to post a slew of complaints and vent their frustration.

"My bills are due...my son is without his meds....and we are hungry ... please tell me something I'm sick of calling all of these numbers and getting hung up on," posted one apparent cardholder, Klyneshia Jones, on RushCard's Facebook page.

Another, Lionel Tyrus, posted: "please everyone once you get your money drop this card and help close down this company."

RushCard problems have highlighted the plight of low-income Americans who often use prepaid debit cards because they have no other alternative to cash.

Simmons—who co-founded the hip-hop label Def Jam—is quoted on RushCard's website as saying that he "created RushCard to improve the financial well-being for millions of people."

RushCard did not immediately respond to an email asking how many people were affected by the glitch. It was also unclear how many cardholders the company has but the New York Times quoted it as saying that they number in the "hundreds of thousands."

In an update on the situation Thursday, RushCard said that the transaction history had been corrected for customers who saw the same transaction displaying twice.

"Please note that this was only a display issue and did not affect your available balance," it said. "We apologize for the confusion this may have caused you."


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© 2015 AFP

Citation: Popular US prepaid debit card hit by days-long glitch (2015, October 22) retrieved 17 November 2019 from https://phys.org/news/2015-10-popular-prepaid-debit-card-days-long.html
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