Customers locked out of accounts at Pockit, Curve and other prepaid cards - MSE News

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  • eDicky
    eDicky Posts: 6,593 Forumite
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    edited 30 June 2020 at 8:56AM
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    Ice card is saying nothing more than what's on in the FCA website. I don't know if FCSC applies.
    Such prepaid cards do not have FSCS protection and should never be used to keep any substantial funds over time.

    Your money should be kept in a 'ringfenced' account with a real bank but I see no info whether this is by ICE or Wirecard, you should find it in T&C's for the card you have.

    What happens when you call 0800 056 0572 to request withdrawal of funds to your own bank account..?


    Evolution, not revolution
  • jjames1985
    jjames1985 Posts: 136 Forumite
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    jbryce said:
    Is my money safe?
    It should be – even if you're unable to access it at the moment. Wirecard is authorised under the Electronic Money Regulations 2011. Under these regulations, it’s required to ring-fence any money you deposit in a bank account that’s separate from its own.


    But isn't the "ring fenced" money the money that's missing?

    As I understand it, not exactly.

    My understanding of it (and I may be wrong) is not that customers ringfenced money has vanished, but that they have overstated, to the tune of  €1.9bn, the amount of ringfenced money they have. This was presumably done with the intention of making the company look like they're doing a lot better/are a lot bigger than they actually are to draw in investors.  So the genuine customer deposits should still be safe, but getting access to them is going to be a problem for the time being.
    Ringfenced money should be exactly equal to customer balances. If the balance was higher, that would mean they have their own money in the ring fenced accounts and therefore they are not keeping customer funds and their own funds separate.
    That's not really what I was saying. I was saying that they SAID there are 1.9bn more in the ringfenced accounts, not that they actually had 1.9bn in those accounts.  It's not exactly what happened as far as I'm aware, but the point is that the money that has actually been deposited can be perfectly safe even with 1.9bn apparently missing.
  • colsten
    colsten Posts: 17,597 Forumite
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    ceremony said:
    These 'unbanking' providers market very heavily and often run refer a friend promotions. They're good at sucking people in. 
    I am one of those who are very happy to get sucked into a free bank account when some referral money or switch bonus can be collected in the process. Many people have made hundreds, some even thousands, of pounds from such offers.

    I feel sorry though for people who believe they cannot get a current account with a bank/building society/credit union and who get sucked into pseudo current accounts which come with fees. These accounts are heavily advertised, and invariably also come with referral offers.

    You are right, though, basic current accounts don't get advertised by the banks. Commercial outfits advertise the products that make them money - that applies equally to banks and to the outfits providing pseudo bank accounts.
  • colsten
    colsten Posts: 17,597 Forumite
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    I received this from Stocard tonight. It looks as if the FCA have now lifted the ban on Wirecard Card Solutions Ltd.



    NB. I only use Stocard for storing my loyalty cards so can't answer any Qs about their debit card.


  • Chrysalis
    Chrysalis Posts: 4,185 Forumite
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    Why have they allowed wirecard again, the solution is to stop companies using it, not to unlock it?
    Is there something i missed here?
  • tehone
    tehone Posts: 640 Forumite
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    Chrysalis said:
    Why have they allowed wirecard again, the solution is to stop companies using it, not to unlock it?
    Is there something i missed here?


    They have allowed Wirecard UK not Wirecard AG to do some things, there are still restrictions in place. I suspect the main things they have checked, are that the money is ringfenced where its suppose to be, available, and can not be transferred back to Germany, to enable customers whose money it is to be able to access it.

    A sensible approach, and I'm sure they are monitoring the situation carefully
  • colsten
    colsten Posts: 17,597 Forumite
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    edited 1 July 2020 at 11:04AM
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    Chrysalis said:
    Why have they allowed wirecard again, the solution is to stop companies using it, not to unlock it?
    Is there something i missed here?
    Presumably because the FCA/PRA are satisfied that the Wirecard infrastructure used by Wirecard Solutions Ltd (a UK company) meets the UK licensing and regulatory requirements, that therefore there is no need to make Wirecard Solutions Ltd employees redundant, and no need to continue to block those consumers whose cards happen to use the Wirecard Solutions Ltd infrastructure from using their cards.

    If you have evidence that the FCA/PRA have overlooked, you should alert them without delay.
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