Federal regulators ordered hip-hop mogul Russell Simmons' company RushCard to pay $13 million in fines and restitution related to a 2015 outage that cut off tens of thousands of its customers from their money.
The Consumer Financial Protection Bureau said Wednesday that it has ordered RushCard and 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.
Tens of thousands of RushCard users...