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The RushCard Fiasco Can Point Us to Good Policy for Serving the Unbanked, Underbanked, and ...

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(Source: CEPR - Center for Economic and Policy Research) The RushCard is a prepaid debit card marketed to unbanked and underbanked populations - people not usually served by traditional banks and card issuers because they are categorized as high-risk and tend to be poorer. Started in 2003 by Russell Simmons, originally a hip-hop executive, the RushCard has faced criticism since its beginning mainly for charging excessively high fees. Criticism has mounted in recent weeks, as RushCard users reported that they were locked out of their accounts and could not use their cards for transactions, although the cards still allowed users to add money to them. This meant that people, some of whom had...

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