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Russell Simmons' RushCard fined $13 million for 2015 outage

Associated Press logo Associated Press 2/1/2017 By KEN SWEET, AP Business Writer

NEW YORK (AP) — Federal regulators are ordering hip-hop mogul Russell Simmons' company RushCard to pay $13 million in fines and restitution related to a 2015 outage that cut off its customers from their money.

The Consumer Financial Protection Bureau said Wednesday that it has ordered RushCard and MasterCard to pay $10 million in restitution to customers as well as a $3 million fine.

In 2015, RushCard had a system-wide technological glitch that prevented customers from accessing their money for days, sometimes weeks. Most of RushCard's customers are people without bank accounts, often poor and minorities. The glitch tied up RushCard's customer service lines for weeks.

This week RushCard was sold to Green Dot, a major prepaid debit card company, for $147 million.

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