WASHINGTON (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.

 

RushCard is 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.”

 

The 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.

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Organizations in this Story

Consumer Financial Protection Bureau
1700 G St NW
Washington, DC 20552

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