Challenger Bank Cashplus accused of misappropriation of £50k of deposits. Automated Payments Services trading as challenger bank Cashplus is accused by a customer of misappropriation of £50k of client’s deposits.
Challenger bank Cashplus has pitched itself as a smarter, simple and faster alternative to regular banks - but some of its customers have had a history of being been locked out of their accounts for days as a result of IT system outages.
Now, it appears that Cashplus is found to be conducting sharp practices with customer deposits.
On 23 March 2022 Miss Angela Kids [not her real name] received a deposit into her business account which has been the subject she states; “… of poor service and constant suspension of services affecting her business…” Miss Kids added ...Cashplus has now suspended my account again, stating the deposit breached the amount by £250...I was told to apply for a temporary increase by their own staff to allow the payment through...., I was refused...".
Financial Fraudster News Investigations has seen the email sent to Cashplus for a temporary increase despite the account being within the limits of a £500 overdraft which irrefutably demonstrates that all reasonableness has been totally ignored by the unreliable Cashplus operation.
Cashplus said they would return the amount back to the depositor and then provide a receipt of the transaction.
Cashplus is accused of misappropriation of the funds and failing to communicate the whereabouts of the client’s funds.
Miss Kids has issued Cashplus with a letter before claim notice as a result of what she says is “…a series of collateral and significant disruptions to her business by Cashplus…” she further stated “…this conduct by Cashplus amounts to theft…”
Financial Fraudster News Investigations has seen evidence that Miss Kids account had the funds been deposited on 23 March 2022 the deposited funds could not have exceeded the account limit Cashplus had imposed on the customer in the first instance which has given rise to allegations of misappropriation of £50k of client’s deposits.
Financial Fraudster News Investigations has now seen a copy of the letter before claim and Miss Kids.
Cashplus has declined to comment.
Twitter criticism for Cashplus
Twitter user Alex Lawrence tweeted Cashplus on Monday with a complaint about the service.
He said: “Absolutely fuming here, I was unable to withdraw cash earlier and you’ve taken it out my account anyway.
“Now I’m told it will take up to 7 days to resolve! Unacceptable. Two days before my holiday you’ve messed up my holiday money!”
@Cashplus Abosolutely fuming here, I was unable to withdraw cash earlier and you’ve taken it out my account anyway. Now I’m told it will take up to 7 days to resolve! Unacceptable. Two days before my holiday you’ve messed up my holiday money!
— Alex Lawrence (@Alanator88) September 17, 2018
Another tweeted the challenger bank saying: “So does this happen on the regular? My card has been declined twice today. Not happy.”
So does this happen on the regular? My card has been declined twice today. Not happy.
— Boundless 37 (@37Boundless) September 17, 2018
Cashplus tweeted both customers offering an apology for any inconveniences caused.
Cashplus tweeted: “We’d like to say sorry for any inconvenience caused by our outages today and yesterday.
“Our team is working tirelessly to make sure that everything is back up and running as it should be. Keep an eye out on our service status page for any updates.”
In a statement, a Cashplus spokesperson said: “Unfortunately due to maintenance carried out this weekend by a third party provider, a minority of our customers have been facing intermittent issues making payments or accessing their account online.
“The third party provider is aware of the issues and is working hard to resolve these (which we understand has affected other customers of theirs).
“We’d like to confirm that at no time has any customer money been lost or at risk, nor data compromised. We take multiple precautions to safeguard our customers’ funds and data.”
There were also complaints from customers who were unable to contact the company through its customer service helpline, while the Cashplus Twitter page was not updated for 20 hours until this afternoon.
When Compelo tried to call the company’s customer service helpline at midday, it appeared to be down.
Cashplus later replied to a Twitter user saying it had received a high volume of calls but the phone lines were working.
Compelo has asked the company for details on how many customers had been affected by the outage and when money would be returned to customers who have complained about cash from failed transactions leaving their accounts, but has not yet received a response.
An FCA spokesperson said: “The FCA is aware of the issue and is liaising with the firm.”
