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UniRush Financial Services founder Russell Simmons on the success of his prepaid debit card and why the fees were reduced.
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The prepaid debit card market rapidly becoming one of the fastest growing areas of financial services consumers are expected to put.
120.
Billion dollars on prepaid cards this year that's up from 71 billion in 2011 and six.
Start -- this is usually popular very good investment for some people but while build.
As alternative -- additional bank accounts prepaid card's high fees and celebrity endorsements are drawn some criticism from critics joining us -- -- Fox Business exclusive.
Just Russell Simmons -- chairman and founder of you in -- rush financial services which just announced a cut.
In fees for the company's prepaid cards great to see you not anti sodomy now and Consumers Union says that regular checking accounts or cheaper our own.
Gerri Willis is not a big fan of the SN and she said about about your card -- whose enormous card she says ultimately.
These cards or glorified gift cards Layton would -- that find an audience because they are backed by a celebrity.
Let me know what would you say that's going efforts to ball.
I created this industry nine years ago there was no American Express no Wal-Mart -- Suzie -- and I and I create an industry.
For people who -- locked out of the banking business that was sixty million Americans who could not -- a bank account.
And other get online and check cashing place and then get on -- to pay your bills and be locked out -- the American dream.
They now had plastic -- create a virtual bank so let me just explain while people.
May be able to get cheaper checking out some people can't get checking accounts this is an alternative for the I don't know it was an alternative and and one -- JPMorgan put out report.
And -- the average one of our -- pay about 400 dollars a yet put their account.
And my accounts about a 120 -- media and that now is down to 71 dollars a year -- that's what fund limited transactions and it's a financial well being company.
Other words we do budgeting we do discount.
Health care we do prescription discount drug cause we do.
Caught the caught transfer of for 99 cents not 35 -- -- some cases that we do a lot of things fought customers.
And the fact that people the banks are upset that we're taking customers that they don't want.
And can't manage to the average bank account cost about 350 dollars -- he had just to manage.
So I think that people taking heat.
And I'm happy take the heat and our customers we know them and they know us why did you cut the feed did you feel pressured to get back -- deep knowledge even even better -- gets better.
Our company grew last month.
Three times at the -- did last year my company is nine years old.
So again I think it grew three times at the rate did last -- in this yeah I mean and that's month -- isn't this month.
Model passing your profits on of the that's right I'm always -- wake up every morning trying to figure out how I can do more for less.
But I wanna do more of the -- I don't wanna do less -- less so I don't I wouldn't cut my fees less likely improve my customer service and create new services.
We also give people now -- -- did cash three days before two days the working on three days two days before they check comes.
So I keep people out of -- -- The market is the best indicator of whether something is good or bad I think as a mark if people.
Word gets around pretty fast in this environment.
Particularly among areas where people are change a lot of information on the street about what's good and what -- -- good.
And if this was a bad product one that eventually major poorer.
Then richer don't you think it would be a failure revenue -- I don't -- sometimes misinformation gets out.
And it can damage companies but it's not seem to damage caused but it is bad information and the fact is.
About 71 dollars a month for unlimited transactions.
Is a lot cheaper than if you don't have a minimum balance and.
Bank account can cost a fortune so other celebrities have come under fire for doing similar -- -- debit cards and charging -- -- -- the Kardashians I think what would you say to people like that.
Well in -- and defend anything else is caught this is a caught in the industry that I -- again I was first.
And I wouldn't -- -- not -- my created and I'm not a can say celebrity endorsed him but of course I built the industry.
I think the -- attacked every one Suzie Ormond and all -- -- were involved a very good business for me.
Because they educate people and for themselves because they educate people on this new form of banking.
Which is being embraced by the consumers.
Has taken a load off to banks who couldn't afford to -- customers and more and more people.
Up on migrating hundreds of thousands of people migrating from the banks to us -- -- middle it started underserved communities.
It's now really basis had very strong in the middle class.
As make -- a big difference for a lot of people as you were more successful as a bank and you called yourself a bank or government regulators coming in to try to regulate your little more.
Well has been some discussion of regulation I think they have toward.
I don't think the banks are bad I just think they can afford these customers so -- -- that can you afford it that budget they're gonna expand -- look at it this -- That Tower Records and -- iTunes.
I don't have a bank brick and mortar system I don't have a lot of people run around.
Do I have a lot of technology as the technology gets better and we become more creative up prices go down and and again.
On new prices are a testimony that up pricing going down and banks prices are going up.
By the way I saw you at the years that the Occupy Wall Street any of the occupied people whether attacking viewers this is why I've seen some footage but mostly when I'm there I'm -- -- I think that Occupy Wall Street -- up a lot of important dialogue about economic inequality and I think that thing that can come out of it is maybe we can get the money out of politics which is my main reason to go to so often.
I think that what's different powering a lot of America most of them more -- -- sentinels everyone is that.
Corporations invest too much -- -- government which have a democracy.
We had a people go to work every -- and I'll -- other -- the other thing around two -- -- government is investing too much money corporations minutes of the bail -- the world about practice because wages -- -- time of government money -- you -- a -- seemingly -- -- now have no I don't ever in any kind of -- I don't fault the president alive and it Mitt Romney anyone.
-- work -- -- Wall -- a loss of legal.
But legal bribery has to stop the and that's what I'm really care what you say now though are you willing say I will never take any money from the -- -- -- -- wouldn't say either I'm happy to pay more taxes but I certainly would can't say that would give more taxes -- -- five charities of my own I don't need.
I've but did the money not to war machine but instead to the charities -- reprimand but I'm happy to pay more taxes.
And I'm happy but everybody is a candidate to operate in the law but like to change the law.
With cooperation didn't control of government and people instead controlling the government doesn't controls are many corporations as well but by some parts of the collaboration is is I think that's the problem works both -- that's right colossal Simmons give us is so much of a -- -- -- -- for coming and appreciated.
