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By Ryan Bort
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Earlier this month, a technical glitch prevented thousands of RushCard users from accessing their paychecks. Now Russell Simmons, who founded the popular prepaid debit card, is creating a multimillion-dollar fund to assist those who were impacted by the malfunction.
RushCard users started experiencing problems over Columbus Day weekend, when the card switched from one processing technology provider to another. The card's customers, many of whom have low incomes and live paycheck to paycheck, took to social media en masse to air their grievances. Federal regulators have said they are looking into what caused the issue, and at least one class-action lawsuit has already been filed.
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The new fund will compensate those who incurred a financial penalty—such as losing a deposit on an apartment or being hit with a fee for a late rent payment—as a result of card's technical problems. Some customers were not able to access their funds for 10 days. "This whole situation has been devastating for them, and we want to make sure they are made whole," Simmons told the Associated Press.
Additional details as to how the fund will work or when it will take effect have not yet been released, but tens of millions of dollars in compensation will likely be issued, according to the AP.
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