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Russell Simmons' RushCard company being sold to Green Dot

Associated Press logo Associated Press 1/30/2017 By KEN SWEET, AP Business Writer

NEW YORK (AP) — RushCard, the prepaid debit card company founded by hip-hop mogul Russell Simmons, is being sold to a rival for $147 million.

Green Dot said Monday it will buy UniRush, the parent company of RushCard as well as the Rapid! payroll debit card. Simmons started RushCard in 2003 as one of the first such cards to focus on minority customers and charge lower-than-average fees.

RushCard entered the national spotlight in 2015 after a software upgrade went haywire, cutting off more than 400,000 customers from their funds for days, even weeks. The incident remains under investigation by the Consumer Financial Protection Bureau.

Green Dot CEO Steve Streit says despite that, the company is buying RushCard largely for the name recognition and its customer base of 750,000 people.

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