Russell Simmons has, undoubtedly, had an illustrious career as a businessman. However, his RushCard venture--which bills itself as a prepaid Visa card that lets you shop, get cash at ATMs, pay bills, buy online and get Direct Deposit without credit checks or overdraft fees--has become a massive failure, with users unable to access their funds. Now, according to the DailyMail, five RushCard users are issuing a class action lawsuit against the Hip-Hop mogul for failure to receive their funds.
The five RushCad customers are suing for negligence, fraud, breach of contract, and violation of the New York deceptive acts and practices law.
Along with the lawsuit, RushCard is under investigation by the Consumer Financial Protection Bureau.
According to Nicole Blackshear of Dayton, Ohio in an exclusive statement to HipHopDX, "There are thousands of us that have been locked out of our accounts, can't access accounts, money is missing, direct deposits not posted. They keep lying on their Facebook page that the system is back up, and it's not. When you call, you stay on hold for hours and then the line just hangs up on you. I have not received my direct deposit and the money that I had in there already is not available. Try to swipe the card at a store or ATM and it declines. Tried to log in online and it says my card is deactivated. If you go to Facebook and go to RushCard's or Russell Simmons' page you will see that there are a million on us suffering. People are being evicted, can't get to work because they can't get gas. People are needing milk and pampers for their children. People's utilities have been disconnected. There is so much pain and suffering and no explanation."
Russell Simmons has received further criticism regarding the RushCard, as some have accused him of including hidden fees.