Posted: 10/21/2015

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As has been reported by several outlets, RushCard, the pre-paid Visa debit card provider, set off a series of nightmare events for a number of its customers when it switched its processing vendor. Many RushCard account holders are still without access to their funds and continue to seek answers as to when their money will be available. Customers have been unable to pay bills, gain access to funds, or transfer money due to the glitch.

Rush Card

As has been reported by several outlets, RushCard, the pre-paid Visa debit card provider, set off a series of nightmare events for a number of its customers when it switched its processing vendor. Many RushCard account holders are still without access to their funds and continue to seek answers as to when their money will be available. Customers have been unable to pay bills, gain access to funds, or transfer money due to the glitch.

Several customers have taken to social media to voice their anger and to hopefully receive some answers. Rumors that the corporation was hacked, bankruptcy theories, and other stories have circulated, only adding fuel to an already smoldering fire. To add insult to injury, quite a few customers that have tried to reach customer service for answers have been placed on hold for hours on end, hung up on, or receive nothing more than an apology and statement that the issue is being worked on. As of late, although some customers have regained access to their accounts and money, many are facing late fees on overdue bills, eviction, loss of employment, etc. because their money is unavailable.

The RushCard Corporation has sent out status updates, along with apologies and assurances that matters will be corrected. They have also issued a goodwill gesture in the form of a fee free holiday season where the company will waive any fees starting November 1, 2015, through February 29, 2016. But this has been little comfort to many of the company’s impacted customers. Customers are demanding compensation and threatening lawsuits, complaints, and even to seek having the cards banned in their respective states.

Before deciding on any prepaid product, get the facts and explore all of your options. Remember, a prepaid debit card is very different from a bank account debit card and may carry fewer consumer protections than bank issued debit cards or credit cards. Here are some useful tips:

  • Obtain information on the fees, terms, protections, and policies before signing any cardholder agreement.
     
  • Read and understand your rights in the case of loss or theft, as well as procedures to cancel and obtain refunds.
     
  • Contact their customer service department by phone or other methods listed to ensure someone will be available to communicate with you should you need to get in touch with them.
     
  • Check BCA for information on the company, including their complaint history and how responsive the company is to complaints and consumer reviews.
     
  • Explore features such as online access, text alerts, overdraft protection, money management tools or any other available features that may help you with your financial needs.
     
  • Contact your local bank or consider joining a credit union as an alternative.
     
  • Shop around and compare plans to find the one that best fits your budget and financial needs.

If you are a prepaid debit account holder looking to cancel your account, check your cardholder agreement for cancellation steps and policies. Make a list of all automatic deposits and withdrawals on your account and update each to your new account or cancel them altogether. Leave enough money in your account to cover any outstanding transactions that are pending or have not posted yet and deduct the balance out of the old account. Once you close the old account, obtain written confirmation that it is closed.

Visit BCA’s report on RushCard to read consumer complaints, write a review on the company, or file a complaint.

Before you pay, check BCA!

About Business Consumer Alliance

Business Consumer Alliance (BCA) is a non-profit company that started in 1928. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.

Tags: Rush Card, prepaid debit card

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