Business is booming for Russell Simmons! The 59-year-old music mogul’s RushCard, the prepaid debit card company he founded, is being bought by Green Dot for $147 million. Reportedly, Green Dot will buy UniRush, the parent company of RushCard as well as the Rapid! payroll debit card.
In 2015, Simmons and his RushCard made headlines, after a software upgrade wrongly cut off more than 400,000 customers from their funds for days and in some cases weeks. The situation was a PR nightmare for the company and RushCard customers were unable to purchase necessities for their children, and customer service lines were tied up for weeks.
Green Dot CEO Steve Streit said he and Simmons have had conversations about an acquisition going back years.
Having his name associated with RushCard is a big reason why we are buying it.
Green Dot plans to retain the RushCard name and brand along with its other products. As part of the transaction, Streit said Green Dot will not be liable for any settlements tied to the 2015 incident. This includes the investigation still ongoing by the Consumer Financial Protection Bureau.