RushCard to create fund to compensate victims of card problems

NEW YORK -- Russell Simmons' RushCard company say it will to create a fund to compensate victims of card problems.

Last week, thousands of customers of pre-paid debit cards backed by the hip-hop mogul were without access to their money after technical problems first began plaguing the cards.

Customers of the so-called RushCard, a pre-paid debit card aimed mostly at people without bank accounts, say they have missed car payments and worse. Some say they have been unable to purchase food or important items for their families.

The problems with the RushCard started October 12, when a software upgrade in the card's transaction processing system caused many RushCard accounts to show a zero balance or left customers unable to access to their funds.

The company said that even if customers are unable to get at their money, it remained safely housed in MetaBank, the custodian bank used by RushCard. MetaBank is insured by the Federal Deposit Insurance Corp.