Zeek user left out of pocket? Here's what you can try - MSE News

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Users of online gift card marketplace Zeek have been left in limbo as the company remains in receivership, with some claiming to be hundreds of pounds out of pocket - here's what to try if you're affected...
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'Zeek user left out of pocket? Here's what you can try'
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  • ColinJones
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    In your coverage of the loss of money by UK users of Zeek (the online marketplace for selling second hand gift-vouchers), you should be aware that it could be that the FCA are complicit in consumers’ loss.

    Hidden away in Zeek’s Terms and Conditions is the assertion that Zeek.Me acts purely as an agent of the seller of the gift-voucher, and not of the buyer (this is not immediately obvious from their website homepage).
    Indeed, it explicitly states in the T&Cs that, from the buyer’s point of view, payment to Zeek is the same as payment to the seller.
    The T&Cs also state that Zeek has the seller’s authority to complete the sale of the gift-voucher.

    The T&C’s are written this way as, in the UK currently according to the FCA, these terms enable the CAE (Commercial Agents Exemption) loophole to apply from PSD2 protection.
    PSD2 (in the UK, the Payments Services Regulations 2017) came into law on 13th January 2018, and states that online-marketplaces that handle client payment from this date must be FCA registered, and if over certain volumes then the client funds must be safeguarded in special segregated secure bank accounts, unless the CAE applies (in which case, the marketplace firms are completely outside this law).

    Now the German and French FCA equivalent regulators have long ruled that an on-line marketplace cannot invoke the CAE simply by stating in its terms and conditions that it has the authorisation to complete a sale.

    See for example the German regulator’s ruling from 2014:
    https www . bafin.de / SharedDocs/Veroeffentlichungen/EN/Fachartikel/2014/fa_bj_1404_bezahlverfahren_im_internet_en.html?nn=7858612#doc7874232bodytext7

    But the FCA is fighting these other regulators tooth-and-nail, and currently interprets the law to allow Zeek and other online marketplace to exclude themselves from the new law by some deft text in the T&Cs stating that they have authority to finalise a sale from one party.

    The result is that client money is treated as the marketplace’s own, with no special care nor handling nor special protection, and in the case of Zeek the possible loss of sellers’ money as a result.

    This should not be allowed to continue – the FCA must follow its co-regulators example, and interpret the new law correctly, and force marketplaces to protect client money as the law mandates.


    I believe MSE should update its story to include these facts.








    P.S.
    Although Zeek is an Israeli company, it is seemingly clearly operating in the UK.
    For example, its T&Cs at https wp.zeek.me / terms-of-use/ (saved just now to the internet wayback machine) state multiple examples including:

    · * The Service is solely for the promotion of products within the United Kingdom.
    · * (ii) the brand of the physical Gift Voucher to be listed must have at least 5 stores/branches in the UK;
    · * etc.
  • stphnstevey
    stphnstevey Posts: 3,225 Forumite
    First Post First Anniversary Combo Breaker
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    I am presuming those that changed Quidco cashback into Zeek have now lost that?
  • goody2
    goody2 Posts: 88 Forumite
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    That's what I am wondering as I did that from Topcashback, used cashback to buy Zeek credit


    Can't find an answer to this anywhere
  • garibaldi22k
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    I'm in a similar position.
    I exchanged my Quidco earnings for Great British Pub cards (GBP/Greene King) through Zeek.
    Although I could see the cards & have confirmed the remaining balances with GBP, I can no longer access them.
    GBP cards Customer Services say there's nothing they can do !
    Why were Quidco allowed to continue promoting them, if they were going bust ?
    Hopefully, I've got some means of recourse but unsure who to approach now.
    OR
    Has my 'money' gone ?
  • stphnstevey
    stphnstevey Posts: 3,225 Forumite
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    Guess no one got anywhere?
  • stemcgoo
    stemcgoo Posts: 130 Forumite
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    I think there are at least three separate types of complaint against zeek.me buy I am only seeing advice anywhere on two of them....
    1. Sellers of vouchers who have not been paid by Zeek are now likely to be left to deal with administrators for recovery of whatever "pennies in the pound" can be realised.
    2. Buyers of Zeek credit are similarly either limited to dealing with administrators or taking it up with their Credit Card or Bank for payments made.
    3. The final one is the one which also affects many people, but I am seeing no advice on - it is Zeek.me users who had already bought, paid and received merchant vouchers - for instance Odeon, or iTunes or Starbucks codes and vouchers which are sat in the users Zeek.me wallet. These are now not accessible, but my understanding is these are fully paid and are now the property of the user. Why are we the users not being given these codes so we can continue using them?
  • K10
    K10 Posts: 15 Forumite
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    stemcgoo wrote: »
    I think there are at least three separate types of complaint against zeek.me buy I am only seeing advice anywhere on two of them....
    1. Sellers of vouchers who have not been paid by Zeek are now likely to be left to deal with administrators for recovery of whatever "pennies in the pound" can be realised.
    2. Buyers of Zeek credit are similarly either limited to dealing with administrators or taking it up with their Credit Card or Bank for payments made.
    3. The final one is the one which also affects many people, but I am seeing no advice on - it is Zeek.me users who had already bought, paid and received merchant vouchers - for instance Odeon, or iTunes or Starbucks codes and vouchers which are sat in the users Zeek.me wallet. These are now not accessible, but my understanding is these are fully paid and are now the property of the user. Why are we the users not being given these codes so we can continue using them?

    I totally agree! I had transferred my Topcashback Cashback of £180, taking advantage of an enhanced offer with Zeek, and now effectively lost the lot! :mad:
  • stemcgoo
    stemcgoo Posts: 130 Forumite
    First Anniversary Combo Breaker First Post
    edited 1 July 2019 at 6:59AM
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    No but thats two separate issues I would think.

    If you have Zeek credit on your account, that is at risk now and TCB arent helping anyone out...as usual.

    If you spent your credit and received the gift codes and vouchers in your wallet, then these are your legal property.
  • SandonBoy
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    Spot on Stemcgoo.
    I too had several hundered pounds worth of John Lewis shop vouchers saved up for a big spend. Went into store, and Zeek App was frozen, not able to access the paid up (my property) voucher codes.
    Last few were within PayPals time frame, and they came back that my problem was not covered by their guarantees. PayPal was paid in turn with my mastercard or visacard. Not approached either of these.
    Will keep a watch on this thread.
  • Stonefish
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    I have only just found out that Zeek no longer exists! I exchanged £300 of my hard earned money from Topcashback which has been sitting there waiting for 'a rainy day'. I guess I should have spent it straight away instead of thinking I have two years to make a purchase!
    Like many others I am feeling very disgruntled! It does not seem fair that these firms can keep taking innocent people's money whilst owing millions. They should be shut down long before this!
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