Simmons, creator regarding the RushCard, stated if it has any legitimacy that he will take every complaint and claim from customers who were affected by the recent outage and pay it. (Valerie Goodloe/NNPA Information Wire)

(NNPA) – Russell Simmons hasn’t slept much since news broke in mid-October that users of their RushCard couldn’t access their money that is own and locked from their reports, because of some type of computer glitch, making some not able to make rent re re re payments, spend utility bills or purchase food with regards to their families.

“Technology problems happen, but this is a tsunami,” said Simmons in a special, hour-long meeting aided by the NNPA Information Wire.

Users started experiencing dilemmas when Simmons’ business switched up to a transaction-processing that is new, a thing that he said they’ve done effectively at the very least four times.

“We made the transfer of procedures four split times into the past plus the the next thing you understand, I have a text that people were down for two hours,” said Simmons, the iconic business magnate who founded Def Jam Records and the Phat Farm clothing line that we sent to our customers. “Our call center frequently gets about 600 telephone calls and today it is [getting] 600,000 calls.”

Simmons said that three multi-billion buck corporations had been mixed up in procedure and every is useful in resolving the technical problems associated with the latest change.

Simmons credited MasterCard CEO Ajaypal Singh Banga with instantly answering the issue and assisting to fix it.

“He’s the CEO of a $120 billion business and then he picked the phone through to the very first band,” Simmons said, incorporating that Banga has talked a whole lot about finding approaches to achieve underserved communities as well as others whom don’t use old-fashioned banking institutions.

Within the aftermath associated with outage that wreaked havoc in the everyday lives of several thousand cardholders, RushCard created a multi-million buck investment to pay clients have been impacted.

Simmons additionally stated it and now he’s doing everything in his power to make his cardholders whole, even going beyond that that he has heard the criticism about the outage loud and clear and he’s accepted.

“The means we see it, i shall take every issue and claim and spend it, if it offers any legitimacy,” stated Simmons. “I’ve heard individuals being placed from their flats or within the medical center needing medication and the things I have inked, the thing I do, is when they say they [lost] $400, I’ve given them straight back that precise quantity and I’ve additionally modified their fees.”

As well as restoring consumer reports in full, Simmons stated that from Nov. 1, 2015 through February 29, 2016, RushCard clients will relish a no-fee vacation, that will exempt card users from having to pay month-to-month, deal and ATM charges through that duration. Those who start brand new accounts is likewise qualified to receive the holiday that is no-fee, but all cardholders it’s still in charge of spending third-party costs.

Whilst it will definitely cost him cash, he stated it is only one method of regaining the trust of their dedicated base.

“I like if this business is actually lucrative, then we can venture out and assist the community in a manner that no bank, no institution that is non-Black will,” he said.

UniRush, LLC, the organization that has RushCard, ended up being co-founded by Simmons 12 years back to aid low-to-moderate earnings individuals and families have actually a less strenuous time spending bills and handling their cash.

“The RushCard could be the embodiment of my message of empowerment, since it is a far better and more clear choice for scores of ‘underbanked’ and ‘unbanked’ People in the us, whom frequently suffer as a result of big finance institutions,” Simmons stated.

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The Federal Deposit Insurance Corporation stated that Ebony households are more inclined to be unbanked (20.5 per cent), which means they don’t have an account at an institution that is insured than their White counterparts. Significantly less than 4 percent of Whites are considered unbanked.

Roughly 33 per cent of Ebony households are considered underbanked, meaning that also they have also relied on alternative financial services within the last 12 months though they have a bank account. About 16 percent of White households are underbanked.

Simmons stated that people employees are locked out from the United states Dream.

“That’s why it had been so essential to place synthetic inside their arms, so they really could go surfing and spend their bills,” explained Simmons. “What I learned is that individuals could possibly get their [direct deposits] for them two and quite often three times early in the day. We give it for them right it keeps them far from pay day loans. since it’s posted and”

Regulators have actually argued resistant to the utilization of prepaid cards, citing fees that are high the convenience for which scam music artists could access reports.

Regardless of the outcry by federal regulators as well as others before and because the RushCard technical issues started, Simmons stated that he’s providing a site for the underserved among others that they either don’t get access to conventional banking services or are increasingly being overcharged.

Simmons included, “No one else is offering it for them, this ongoing solution.”

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Simmons additionally stated that charges for their card aren’t up to other prepaid cards and RushCard people get access to 25,000 free ATMs.

In accordance with Bankrate.com, the Prepaid Visa RushCard “Pay As You Go Plan” is among a few cards which have no maintenance that is monthly. An activation is carried by the card cost that ranges between $3.95 and $9.95 and users may also be charged 50 cents for every single out-of-network ATM balance inquiry.

In contrast, Walmart’s MoneyCard Plus features a $3 month-to-month maintenance charge, an activation cost which can be since high as $4 and charges $1 for every single ATM stability inquiry, aside from inquiries made at MoneyPass ATMs.

Simmons stated their business has hired extra workers to greatly help solution and resolve customer complaints and that cardholders should continue steadily to report dilemmas and any economic hardships due to the two-week outage to the RushCard call center.

“i would like my clients to understand that individuals will restore RushCard while the gold standard of payday loans in Wisconsin [prepaid debit card] services inside our community,” stated Simmons.

Simmons continued: “I want to make sure people who depend on the RushCard until we now have regained your trust. that i am going to perhaps not rest”

By Stacy M. Brown NNPA Contributing Author