(Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) has taken action against MasterCard and UniRush following allegations of system breakdowns
that caused harm to tens of thousands of economically vulnerable RushCard users.
a card advertised as a way to help consumers get direct deposits “up to two days sooner.” In October 2015, MasterCard and
UniRush allegedly committed a series of blunders that left RushCard users
unable to access their money to pay for basic necessities. CFPB alleges that the companies denied consumers access to their own money, botched the
processing of thousands of deposits and payments and provided account
information to consumers that was inaccurate.
“MasterCard and UniRush’s failures cut off tens of thousands
of vulnerable consumers from their own money, and threw some into a personal
financial crisis,” CFPB Director Richard Cordray said. “The companies must set things right for consumers and make sure such
devastating service disruptions are not repeated.”
Dodd-Frank Wall Street Reform and Consumer Protection Act gives the CFPB the
power to take action in this situation. Under the CPFB’s action, MasterCard and
UniRush must pay an estimated $10 million in restitution to tens of thousands
of harmed consumers, as well as a $3 million civil penalty.