UK cardholders money locked amid Wirecard fallout – BBC News

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Curve

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Curve is one of the cards impacted by the problem

Countless people in the UK are not able to access their cash owing to the fallout from the scandal to hit payments firm Wirecard.
The UK licence of Wirecard Card Solutions has been frozen by the regulator after its German parent company applied for insolvency.
It suggests people are momentarily unable to gain access to cash held with financial apps in the UK using Wirecard innovation.
Some have actually mentioned their disappointment, but their cash must be safe.
Wirecard Card Solutions serves prepaid cards, such as the U Account, which marketed itself as an alternative to a bank which assisted people to spending plan and avoid substantial overdraft costs.

” This is an enormous problem for many customers who rely on the cash put in their U account for daily basics consisting of the ability to pay rent and purchase food,” one client told the BBC.
Money is safe
The regulator, the Financial Conduct Authority (FCA) stated it had actually purchased Newcastle-based Wirecard Card Solutions “to stop all managed activities in order to further safeguard customer cash”.
Financial innovation companies Pockit; Anna Money, a company account; and Curve, which aims to combine peoples finances in one app, informed consumers they would be obstructed from their accounts after the FCAs choice.

They stated that clients money was still safe, but would not be accessible for a time.
” This action is not related to Curve – however Curve currently depends upon Wirecard for operation of the Curve card,” Curve told customers on Friday. “We are suggesting that for the period of this brief suspension Curve clients carry an alternative payment approach,” it added.
” We are already well on the method to migrating away from Wirecard but have actually not fully completed this process.”
Anna said: “We expect the suspension to be lifted – the failure to utilize your account and card is short-term, and we are working to restore it as soon as possible.”
Pockit stated it was working with the FCA to get the problem fixed as quickly as possible.

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Funds are not safeguarded, as they are in banks, by the Financial Services Compensation Scheme, but the firm said clients cash was held securely in segregated accounts.
The FCA has actually told people impacted to contact their card supplier.
The action follows the German parent company Wirecard last week revealed a EUR1.9 bn (₤ 1.7 bn) hole in its accounts, and consequently applied for insolvency.
Previous boss Markus Braun has actually been jailed and accused of inflating Wirecards finances to make them appear healthier to investors and clients.
The Munich based firm employs practically 6,000 personnel in 26 nations. The companys lenders stand to lose billions of euros from the scandal.

Wirecard: Scandal-hit firm apply for insolvency
Wirecard: Former employer detained over EUR1.9 bn scandal

On its site, Wirecard Card Solutions said: “Wirecard Card Solutions Limited (WDCS) has actually momentarily suspended its electronic money issuing, card acquiring and releasing business with immediate impact and till further notification.
” WDCS is working hard to have the actions in place which will allow the suspension to be raised so company can resume as usual. We will supply additional updates on our website as quickly as we can.”

Wirecard disclosed a EUR1.9 bn (₤ 1.7 bn) hole in its accounts