Russell Simmons

Russell Simmons' RushCard fined $13 million for 2015 outage

RushCard, the debit card company founded by hip-hop mogul Russell Simmons, is being fined and forced to pay millions in restitution to customers that were affected by a 2015 outage that cut users off from their money.

The Consumer Financial Protection Bureau said Wednesday that it has ordered RushCard and its payment processor, MasterCard, to pay $10 million in restitution to customers as well as a $3 million fine.

In 2015, RushCard decided to change its payment processing company to MasterCard. Typically a routine software change, the upgrade was handled improperly, resulting in a system-wide failure of RushCard's payment processing and deposit accepting systems.

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