All Banking Law, All in One Place. Bloomberg Law: Banking is the comprehensive research solution that powers your practice with access to integrated banking-related legal news, analysis,...
Oct. 23 — The Consumer Financial Protection Bureau (CFPB) is prepared “to use all appropriate tools” at its disposal to provide relief to RushCard customers who have been unable to access funds in their prepaid accounts for more than a week, Director Richard Cordray said in a statement.
In an Oct. 23 statement, Cordray said he has personally told UniRush CEO Rick Savard to take immediate action to fix problems its prepaid RushCard's customers are having accessing their accounts. The company has said technical problems are to blame for the customer access problem, which began Oct. 12.
“We have stressed that RushCard and its relevant business partners must ensure that no other consumers will be denied access to their funds. Further, we indicated that the CFPB is prepared to use all appropriate tools at our disposal to help ensure that consumers obtain the relief that they deserve,” Cordray said.
The CFPB is also discussing the situation with the Office of the Comptroller of the Currency (OCC) and the Federal Trade Commission (FTC) “to ensure a comprehensive response that addresses the situation quickly and holds accountable all of the parties involved to make consumers whole,” he said.
The CFPB declined to elaborate on what actions it might take. National Consumer Law Center associate director Lauren Saunders told Bloomberg BNA in an Oct. 23 e-mail that the bureau has authority to take enforcement action to address “unfair, deceptive or abusive practices,” and potentially for electronic fund transfer and funds availability regulations.
RushCard has said that customers had trouble accessing their accounts and direct deposits to the cards were returned, due to technical problems the company encountered when accounts were being transferred to a new platform.
A company spokeswoman was not immediately available for comment, but Savard told Bloomberg BNA in an Oct. 22 statement that some customers were still having problems (205 BBD 205, 10/23/15).
Some customers have said they faced late fees paying bills because of the problem. Cordray has told the company to promptly address the “cascading financial effects” of consumers not having access to their funds, according to the CFPB statement.
The card issuer, MetaBank, told Bloomberg BNA Oct. 22 that it and RushCard have tried to help customers facing late fees by overnighting money to them. RushCard also said in its Oct. 22 statement it is waiving its fees for the next four months to help with any losses customers may have faced.
“Very soon, RushCard will be making a significant announcement on how we plan to make this right with our customers who were severely inconvenienced and in some cases suffered hardships,” Savard said Oct. 22. “We have worked extremely hard in the past few years to build a product that is safe, secure and cost-effective for our customers. We are going to do everything we can for our customers and for the communities in which they live to restore their trust and faith in us.”
Saunders said, “We are encouraged by the serious attention that the CFPB is giving to address the situation and ensure that consumers are made whole.” Spokesmen for the FTC and OCC declined comment.
To contact the reporter on this story: Kery Murakami in Washington at firstname.lastname@example.org.
To contact the editor responsible for this story: Mike Ferullo in Washington at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)