Simmons Wins Battle Over Pre-paid Rushcard

RUSSELL SIMMONS is celebrating recent changes in the U.S. financial industry - the hip-hop mogul's prepaid debit card venture is now exempt from credit card regulation fees.
The Def Jam Recordings founder sells the RushCard in a joint venture with a debt collection company.
After a customer pays cash for the card, Simmons charges a $3 (£2) activation fee, $9.95 (£6.60) per month, $2.50 (£1.70) for each automated teller machine (ATM) withdrawal, $1 (£0.67) for each card transaction, and 50 cents (£0.30) to check the card's balance at an ATM.
Consumer advocates have claimed the card hurts low-income Americans, but Simmons dismissed the allegations and began fighting for changes in the U.S. financial services reform bill earlier this year (10).
In a letter to lawmakers, he wrote: "I have worked all of my adult life as an advocate for the poor, the voiceless and the under-served... Debit cards are what keep the under-served - including minorities, immigrants, the poor, soldiers, veterans and students - from the claws of payday lenders and check cashers, from humiliating lines waiting to cash their paychecks and then more lines to pay their bills."
Now the mogul has scored a surprise exemption on interchange fees.
In a statement celebrating his victory, he says: "We are grateful that the conferees worked to reduce any unintended consequences... on the poor, unbanked and under served... This will protect the fees on the most vulnerable, which is what I care about the most."


Tags: Russell Simmons


More Russell Simmons

Lee Pace Makes His Arrival At 'Guardians Of The Galaxy' New York Premiere - Part 1

Celebrities from all corners of the showbiz world were seen arriving at the star-studded event that was the 'Guardians Of The Galaxy' New York premiere....

Cameron Diaz, Kate Upton And Leslie Mann Turned Heads At 'The Other Woman' NY Screening

Cameron Diaz, Kate Upton and Leslie Mann were strikingly dressed as they arrived outside the New York screening for their girl power comedy 'The Other...

Harriet Tubman "Sex Tape" Deleted By Russell Simmons After Outrage

Russell Simmons has ruffled some serious feathers after he posted a Harriet Tubman "sex tape" spoof on his YouTube channel. The hip hop record mogul...

Jay Z Illuminati Links: Are They True?

Are Jay Z’s Illuminati links true? Life is pretty sweet for the multi-million selling rapper, successful entrepreneur and husband of one of pop’s most successful...


Demi Moore Still Knows How To Party Like It's 19...89?

Demi Moore is saying to all those women who've reached half a century on this earth: go out and have a good time while you...

Lil Reese In Viral Video Abuse Scandal

Lil Reese's reputation has split in two after a viral video sees him brutally abusing a woman; some have blasted him, as beating up humans...

Thanks For The Support: P Diddy Reassures Fans After Car Crash

P Diddy has sent a reassuring message to his fans, following Wednesday’s car crash (October 24, 2012) in Beverly Hills.A spokesperson for...

Sarah Jessica Parker, Russell Simmons And Karl Lagerfeld Attend Gordon Parks Centennial Gala

Attendees at the Gordon Parks Centennial Gala at the Museum of Modern Art in New York included multi-millionaire co-founder of the Def Jam record label...



Russell Simmons Newsletter

Subscribe to this news alert service to receive news and reviews on Russell Simmons

Unsubscribe | Unsubscribe All