CINCINNATI (Legal Newsline) - On Thursday, RushCard founder Russell Simmons acknowledged that RushCard was facing a subpoena from Florida Attorney General Pam Bondi over its prepaid debit card.
RushCard has not yet been served with the subpoena and has decided not to comment directly on it.
"I completely welcome any and all debate, discussion and understanding about the best companies in the prepaid debit card industry, which my RushCard company helped found," RushCard founder Russell Simmons said. "The RushCard is extremely transparent in terms of the presentation of its fees and its services. All of the information is available for everyone to see on rushcard.com."
According to its statement, RushCard, a part of the Cincinnati-based UniRush LLC, offers over 60 million Americans basic financial services via the Prepaid Visa RushCard without a traditional banking relationship. The program lists benefits such as direct deposit, the ability to use the card wherever Visa debit cards are accepted and the ability to withdraw funds at over 850,000 ATMs globally.
"As a leader in this industry, I encourage a full understanding of RushCard's transparent pricing, and valuable services, especially for those who have been turned away or let down by traditional banks," Simmons said.
"Third party research has shown that for many customers, the best prepaid card services offer significant savings compared to what they would pay in traditional bank checking accounts, with savings of up to 50 percent, as documented by third party research from the nation's second largest bank by assets, JP Morgan and Company. RushCard is the solution for people who want affordable financial services that they can customize to suit their needs.
"As I look at the payments landscape, I see the banks as the large record chains and my RushCard is looking a lot more like iTunes. I welcome the public debate because the more educated the consumers are the more successful we become."
Bondi's Economic Crimes Division issued the subpoenas regarding alleged hidden fees on prepaid debit cards. Some of the subpoenas ask for information about possible misrepresentations promising to improve the credit scores of consumers. Four other companies were issued subpoenas, including First Data Corporation, Green Dot Corporation, Netspend Corporation, and Account Now Inc.