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Russell Simmons to cut fees on his prepaid card

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CANDICE CHOI | January 26, 2012 05:50 PM EST | AP


NEW YORK — A little celebrity competition may be good for the prepaid card market.

Hip-hop mogul Russell Simmons says he plans to trim several fees on his prepaid card, which works like a debit card but isn't linked to a checking account. The announcement comes just weeks after financial guru Suze Orman introduced a prepaid card of her own.

Simmons said the fee cuts are the result of rapidly growing demand for his RushCard. He said the bigger profit margins have given him flexibility to cut fees and roll out new services.

But he noted that Orman's entry in to the market should only fuel that growth and push fees down further.