Simmons and his company are currently awaiting approval on the settlement offer.
The Washington Post reports that Russell Simmons’ RushCard will pay $20.5 million to customers who were temporarily locked out of their prepaid card accounts.
RushCard experienced technical issues in October of 2015 while transitioning to another payment processor, and the unfortunate glitch left more than 132,000 customers unable to access funds from their accounts for several days.
“The company recognized that their service had caused frustration and unhappiness and damages [to cardholders],” said RushCard attorney John Yanchunis.
Simmons had apologized for the accidental shut-down of RushCard accounts in a video on Facebook back in 2015 stating, “I want to personally reassure you that your funds are safe and that we are addressing every issue as quickly as possible. I deeply apologize for the hardship this is causing.”
The settlement, which has yet to officially be approved, would reimburse customers $19 million for fees and other costs faced after they lost access to their accounts with the remaining $1.5 million to go toward attorney fees.
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