Def Jam record label founder Russell Simmons has stepped up the crusade to protect the image of his prepaid credit card company UniRush LLC, the creators of the RushCard.
Simmons’ company recently launched a new online community that would allow RushCard users to share personal finance advice and questions. The new site includes quizzes, polls and other features meant to encourage community members to improve their financial positions.
“Flexyourfreedom.com will not only educate RushCard customers, but also promote financial freedom & literacy to everyone; especially those who need it most,” said Simmons in a statement. The site may seem like a great idea in theory, but there are definitely some individuals out there skeptical about whether or not Simmons’ products are actually benefitting consumers.
UniRush was just one of five companies to receive a subpoena from the Florida Attorney General’s office upon suspicion that it may have forced consumers to pay hidden fees each time they made purchase. The company, which as 60 million prepaid card users, claims on its website it charges no more than $15.90 in monthly fees. In comparison, those with traditional bank checking accounts pay $40.67 on average and $41.88 using check cashing services.
The four other companies charged with in the case include First Data Corporation, Green Dot Corporation, Account Now, Inc. and Netspend Corporation.
Florida Attorney General Pam Bondi announced her plans to investigate the five companies on May 19. Her office’s statement also suggested that the companies had made misrepresentations about their products by stating that the cards could improve credit scores.
“Prepaid can be more than just another plastic card in your wallet. It can be your tool to manage your money better, flex your financial muscle and break free of high fees,” was just part of the mission statement on the new community’s website.