Agency: Consumer Financial Protection Bureau
On February 1, 2017 the Consumer Financial Protection Bureau ordered UniRush and Mastercard to pay $13 Million after preventable technological breakdowns in October 2015 left tens of thousands of RushCard users unable to access their money and without customer support.
In 2014, UniRush picked Mastercard as its new payment processor. Mastercard and UniRush spent 13 months preparing to switch to Mastercard’s processing platform, which ultimately took place Oct. 10-12, 2015. In the weeks following this service disruption, more than 800 complaints were filed with the CFPB against RushCard highlighting the devastating impact to the personal finances of RushCard users. The CFPB found that Mastercard or UniRush:
- Denied consumers access to their own money
- Botched the processing of deposits and payments
- Gave consumers inaccurate account information
- Failed to provide customer service to consumers impacted by the breakdowns
Mastercard and UniRush have been ordered to pay an estimated $10 million in restitution to tens of thousands of harmed consumers, create a plan to prevent future problems, and pay a $3 million civil penalty to the CFPB. Affected consumers are not required to take action to get restitution.
Details of the action can be found in the “Consent Order”.
Date of Action: 2/1/2017