Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Wirecard is winding down.
As of 28 August 2020, Wirecard Card Solutions closed its business and is selling its assets to Railsbank, CNBC reported.
Wirecard will continue its business while arrangements are made.
Wirecard is drafting the terms of its sale to Railsbank. Wirecard customers can expect to be transferred to Railsbank by November, according to CNBC.
The Financial Conduct Authority (FCA) is working closely with the online-based bank to guarantee its customers are given fair treatment throughout the process.
Wirecard is beginning to eventually close all of its electronic banking services in a slow taper off before transferring its customers to Railsbank.
Railsbank is a London-based bank created in 2016. The company maintains behind-the-scenes services for banks and technology firms and has experience running 50 card programmes around the world, Yahoo! News reported.
“We are delighted to have come to this agreement with Wirecard Card Solutions and thank its team for working positively with us during the process,” Railsbank founder Nigel Verdon said in a statement, according to Yahoo! News. “At the end of the day, customer and team needs are our priority. The Railsbank team will conscientiously work on ensuring customers, programme managers, and team members have a seamless transfer to their new home.”
The business bust is following the ongoing downfalls of the company in recent months.
In June, the FCA called for an urgent shutdown of the company’s operations after its parent company admitted to massive financial fraud.
About €1.9 billion were discovered missing. Millions of customers were subject to account freezes while the FCA investigated the company’s admission to fraud.
The freezing of accounts was meant as a protective measure, but it obviously disrupted the financial flow of millions of inconvenienced Wirecard customers.
After the Wirecard scandal, the FCA cracked down on payment services firms.
As Wirecard’s business tapers off and transfers to Railsbank, some employees may have an uncertain job outlook, according to CNBC.
Most of Wirecard’s employees, which total around 80 people in the U.K., will have their jobs migrate to Railsbank. But there may be some redundancies, according to a spokesperson.
About half of Wirecard’s employees in Germany have been laid off, Yahoo! News reported.
Some customers might be worried about Wirecard’s shutdown, but the FCA is closely monitoring the company to help ensure fair treatment of customers.
The FCA recommends that customers who have an e-money account with Wirecard contact the provider with concerns or questions. Those who make payments with Wirecard are encouraged to contact the company for updates and advice about how to move forward.
The FCA also warns that in times of potential confusion, like when one bank is shutting down and migrating its services, fraud or scams are more likely.
Consumers are encouraged to be cautious about scam activity and call the FCA right away if they think they spot a scam. Scams can be reported to the FCA’s Consumer Helpline at 0800 111 6768.
In addition to contacting the FCA, visit Action Fraud online or call them at 0300 123 2040.
In terms of the next steps, Wirecard services should continue to function normally whilst the changes are being made behind the scenes.
“Our hope is that our programme managers will support our proposal and we can move forward in a positive way for all parties,” Wirecard managing director Tom Jennings said, according to CNBC. “I would like to thank our customers for their ongoing support as well as Mastercard and Visa for their help in making this transition as seamless as possible.”
If you are a Wirecard customer, did you foresee the company’s shut down? After the Wirecard scandal, are you relieved that the company winding down? Let us know in the comments.
Check back daily for the most recent U.K. class action lawsuit and consumer protection news.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
