Don’t Rush to Get a Prepaid Card

Debit Card, by Flickr user Neil Turner, licensed by Creative Commons.

More Money More Problems

Prepaid debit cards have been a blessing in disguise for many of America’s working class, as it keeps its users from over drafting their accounts or spending money they do not have.  One of the most popular versions of the prepaid card family is the RushCard, which is owned and operated by celebrity icon, Russell Simmons.  The trouble started on October 12th during a scheduled maintenance session, in which a multitude of users had their accounts cleared, as well as the delay of paychecks with Direct Deposit features.

The RushCard, along with a multitude of other prepaid cards, serve as a type of payday loan feature.  While RushCard has not actually received the paycheck in the direct deposit features, it is releasing funds to the end users.  Unfortunately, in all capital lettering in the user agreement it states, “Arbitration of your claim is mandatory and binding. Neither party will have the right to litigate that claim through a court. In arbitration, neither party will have the right to a jury trial or to engage in discovery, except as provided for int he AAA code of procedure. No class action, or other representative action or private attorney general action or joinder or consolidation of any claim with a claim of another person or class of claimants shall be allowable”.

So now that hundreds, if not thousands of users have been stranded without any funds to live on, they come to find that they cannot even file a class-action suit, yet are obligated to only fight through arbitration. In a case such as this, it is imperative that the card users have access to direct deposit funds.  The mandatory arbitration clause, which was upheld by the Supreme Court in 2012, dramatically favors big business and these credit institutions.  With the lack of options to proceed, these hard working Americans must now just sit and wait until the issue is rectified, or until arbitration ensues.

Comments are closed.