The freezing of assets of Wirecard leaves vulnerable people with no money | Banking

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The vulnerable people have not been able to access liquidity on accounts supported by Wirecard for three days after the guard dog of british financial has taken action against the company.

On Friday, the Financial Conduct Authority (FCA) has ordered the british unit of Wirecard to cease all regulated activity and freeze all its assets and funds after his German mother company has filed an insolvency file in the middle of accounting fraud alleged by 1.7 billion pounds (1.9 billion euros).

The accounts remained frozen until Monday night, when the regulator said it had lifted the restrictions.

“We are now in a position to allow It to resume its operational activities,” said the FCA in a statement.

“This means that customers can now or very soon to use their cards as usual.”

In addition to affecting customers of the banking applications Pockit, Anna Money and Curve, the suspension in the course of the weekend hit people with accounts U online managed by the lender to home Morses Club, and some charities that have used prepaid cards to bring the money to the people during the pandemic. .

Monday morning, Morses Club has told its customers that their money was safe in an account with Barclays UK ended. “Your money will become accessible when the temporary restriction will be lifted “, he added.

In the meantime, however, he indicated that the benefits and salaries would be returned to the sender.

Among the customers who have contacted the company on Twitter, there was one key employee who stated that he could not afford to pay the travel or food. Charities which help some of the poorest people in the Uk are also affected and have used prepaid cards to make payments to customers.

The Salvation Army has recently introduced payment cards for the clients victims of modern slavery in order to reduce the risk during the pandemic.

She indicated that she had been able to return to its previous systems and ensure that its customers had access to money. Kathy Betteridge, director of the society for the fight against trafficking and modern slavery, said: “The Salvation Army was quickly put in place contingency plans to ensure that our customers of modern-day slavery continue to be able to receive their financial allocations. Cash payments are held for clients in case of need. “

She added: “We have received assurance that all funds are protected by uk law.”

Paul Swinton, which the company B4B Payments, manage prepaid cards for several businesses and charitable organizations, said it has not received any notice of suspension on Friday.

“We were mid-way point of our busiest day of the week in terms of loading cash on the card when this happened “, he said. “We have a client who paid workers abroad. He loaded their cards and had to go on his own account to pay them. “

Thames Reach, a charity for the homeless which is one of the customer of Swinton, said that he had recently dropped the cash for the cards for purchases on social assistance.

“Our employees receive these cards primarily for purchases of well-being for clients. This would include rent, food or clothing, ” said Paul Jackson, its director of finance, prior to the lifting of the suspension.

He said the freezing of bank accounts of Wirecard had made the purchases of well-being ” much more difficult to facilitate “.

The department of Work and Pensions stated that he had contacted a “small number” of benefits claimants who, according to him, had been assigned to make arrangements for help.

Monday evening, the FCA has said that if customers continued to face difficulties to use their card, they should directly contact their card provider.

He added: “We know that some people may have encountered difficulties in the course of the weekend and we have worked with DWP, HMT and the Home Office to assist anyone in financial difficulty. Anyone who is always in trouble should visit our Web site for more details.

“We continue to work with the company and we watch them closely to ensure that it meets the conditions that we imposed and continue to protect the money of consumers.”

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