Millions unable to access money in Pockit, FairFx, Curve and Anna Money accounts after Wirecard goes bust
MILLIONS of people have been unable to access their money in online accounts after the company that provides the technology for them filed for insolvency. Wirecard Card Solutions has had its UK license frozen by the Financial Conduct Authority (FCA) after auditors found problems in the accounts for its German parent company. It means people […]
MILLIONS of people have been unable to access their money in online accounts after the company that provides the technology for them filed for insolvency.
Wirecard Card Solutions has had its UK license frozen by the Financial Conduct Authority (FCA) after auditors found problems in the accounts for its German parent company.
It means people are temporarily unable to access cash held with financial apps in the UK which rely on Wirecard technology to operate.
These include Pockit, FairFx, Anna Money, MuchBetter and Morses Club, many of which are used by vulnerable people, although Curve’s services were made available again on Monday morning after a three-day outage.
A number of benefit recipients pay their money into accounts like these – potentially meaning that people cannot pay for basics including food and rent.
We have asked the Department for Work and Pensions for a comment on how many benefit payments are affected and will update this story when we know more.
Most funds held in the affected accounts are either ring-fenced, insured or protected, meaning that customers will get their money back.
But no timescale has been suggested for when anyone will be able to access their cash.
The FCA said on Monday that it had been working with Wirecard over the weekend to try and get it up and running.
“We are maintaining pressure on the firm to resolve these issues which would allow it to operate under certain conditions,” the FCA said.
“However, we cannot lift the restrictions without reassuring ourselves that the firm has been able to satisfy all our concerns for example that all clients’ money is safe.
“We hope to be able to issue an update soon.”
Wirecard: what's going on?
If you have been affected by Wirecard's problems, here is what you need to know.
Why can’t I access my money?
The Financial Conduct Authority (FCA) imposed a number of requirements on card issuer Wirecard Card Solutions on the June 26.
Regulated businesses which use Wirecard’s technology are also legally obliged to comply with the regulator’s request.
This means accounts which run off Wirecard’s systems are currently inaccessible until the FCA removes the restrictions.
When will the issue be sorted?
The FCA hasn’t said when the problems will be resolved, but there is hope it will be soon.
Martin Lewis, founder of MoneySavingExpert.com, said: “Decoding the FCA’s statement, those who are locked out of their accounts have a reasonable expectation that they will see the money by the middle of this week – Wednesday or Thursday.”
Is my money safe?
Money stored in affected accounts is protected by Barclays or insured, so it will still be there when the accounts reopen.
What can I do if I can’t pay for essentials?
Unfortunately there is no specific help if the Wirecard situation has left you financially high and dry.
If you’re struggling to pay for essentials you might be able to get help from a local schemes such as food banks or your local council.
You can find a food bank near you here.
Funds held in Pockit, FairFX and Anna Money are protected by Barclays, so customers will get their cash back eventually.
Pockit said it was “working round the clock” to get its systems up and running again, but couldn’t give a timescale about when accounts would be able to be accessed.
FairFX said it had developed an “alternative card solution” which didn’t rely on Wirecard technology so as soon as the restrictions are lifted it can continue to trade.
In a message to customers, Anna Money said: “We expect the FCA suspension to be lifted – and so your inability to access your account and card is temporary.
“We’re aiming to have an action plan and more detailed information about suspended payments by Tuesday morning with the goal of getting accounts up and running again as normal.
“When we have absolute clarity on the timing we’ll let you know.”
Morses Club, which provides doorstep loans, said it was in talks with the FCA to try and find a solution, but in the meantime its U Account customers would not be able to access their money and would only be able to view their account balances.
Like the other firms, it said the cash was not at risk.
MuchBetter said its customers were unable to use prepaid cards at present, but that it expected these to be available again on Thursday.
However, Curve customers have been able to get back online this morning after the company quickly changed its systems to handle its online accounts in house.
Some functions, including Apple Pay and organising refunds, still aren’t available.
A statement from Wirecard UK said: “We understand the inconvenience the suspension of our services has caused for our customers.
“We are in dialogue with the FCA and are working hard with them and our advisors to have the steps in place which will enable the suspension to be lifted.”
Most read in Money
Credit card borrowers will be offered lower repayments if they’re still financially struggling and will have longer to pay off £500 interest-free overdrafts under new proposals unveiled earlier this month.
Martin Lewis has warned everyone with an overdraft that they could be slapped with 40 per cent fees soon as banks look to enforce new rules.
Last month it was revealed that banks donated around £147million of your forgotten cash sitting in dormant accounts to charity last year – but you can claim it back.