The system failure left thousands of customers unable to access money in their accounts, and the problems were caused by a lack of preparation and coordination by the companies before UniRush started using Mastercard as its main payment processor, the Consumer Financial Protection Bureau (CFPB) said. Over the course of several days and in some cases weeks, thousands of customers were unable to withdraw cash, make purchases, get accurate account balance information or receive direct deposits.
The companies must pay a total of USD 3 million in fines and USD 10 million in customer restitution, though the agency left it up to the companies to come to an agreement on how much each will pay, according to The Times.
The government action comes as UniRush prepares to sell itself to Green Dot. Green Dot said it will buy UniRush for USD 167 million in a deal that would expand the company’s reach online and add a new brand to Green Dot’s stable of prepaid cards. Still, in a news release announcing the planned acquisition, Green Dot noted that the cost of any regulatory action against UniRush would be borne by the company’s current owners; therefore not affecting the sale price.
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