You are here: Home - Saving & Banking - News -

Wirecard ‘making good progress’ to resolve issues, regulator says

0
Written by:
29/06/2020
The City watchdog said Wirecard is making good progress to meet conditions it set after it ordered the payment processor to freeze funds and cease all regulated activities.

On Friday, the Financial Conduct Authority (FCA) ordered Wirecard not to dispose of any assets or funds and was told to cease all regulated activities in the wake of its revelation that 1.9bn had gone ‘missing’.

The fund freeze has hit many people hard, as it affects other firms which use Wirecard services, including Anna Money, Pockit, Curve and FairFX, to name a few.

Today the FCA has provided an update which stated: “Following last week’s news of €1.9bn missing from the accounts of the German company, Wirecard, we placed requirements on the firm’s UK business so that it should stop carrying out regulated activities and not pay out or reduce any money it holds. Our primary objective all along has been to protect the interests and money of consumers who use Wirecard.

“Teams from across the FCA have been working with the firm, and other international and UK authorities, over the weekend, and we have seen good progress by the firm in meeting the conditions we set.

“We are maintaining pressure on the firm to resolve these issues which would allow it to operate under certain conditions. 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.”

According to MoneySavingExpert.com founder, Martin Lewis, people will likely be re-allowed access to their cash within days.

He 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. And speed is crucial. 100,000s of accounts have been frozen, including those of many vulnerable people who use these payment accounts as their primary form of ‘banking’ and it’s where their social security payments are made. The lack of access to their funds has left many in a state of extreme anxiety.”

Curve today told YourMoney that customers can use their cards as normal. The Curve card allows customers to link their debit and credit cards in one place, with payment then charged back to those accounts.

Any UK customers who receive benefits into their Wirecard account are urged to contact the Department for Work and Pensions.

The FCA added that funds aren’t protected under the Financial Services Compensation Scheme (FSCS) as this doesn’t apply to electronic money or payment services.

However, the FCA can take ‘safeguarding’ steps to protect and return customer money if a firm was to fail.

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Couple with steepled fingers over piggy bank
Lockdown Brits repay £4.6bn debt and save record £25bn in May

In the third month of lockdown, consumers repaid £4.6bn in debt and savings increased by a record £25bn in May,...

Close