UniRush, the parent company behind the RushCard, is trying to make amends with its prepaid-card users. Last year, during a transition to a new processing system, millions of users could not access their funds, some for weeks. Customers quickly filed a lawsuit against the card, founded by Russell Simmons. On Thursday, UniRush agreed to pay $19 million to settle the lawsuit over the outage.
“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, the New York Times reports. “We believe this settlement fairly compensates our customers who were inconvenienced.”
According to the settlement, 300,000 people could recoup $100-$500 for any costs they experienced while locked out of their accounts.
“We’re very pleased with the result and the speed by which RushCard and the other defendants were able to settle this matter,” John Yanchunis, the lawyer for the cardholders, said, according to the New York Times.
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