Fintech startup Payday has issued a response to allegations of fraud raised by its customers regarding sudden account restrictions. In a statement, CEO Favour Ori sought to shed light on the situation, attributing customer dissatisfaction to technical glitches that the platform had encountered.
Moreover, Ori described that the organization had diagnosed unusual sports activities internal its system, prompting the restriction of approximately 2,000 accounts. In light of recent poor service quality, he extended an apology to the affected customers allegations and emphasized Payday’s commitment to resolving issues and reinstating trust in the platform.
Ori reassured customers allegations that their price range remained consistent, and that the agency modified into going for walks diligently to restore all impacted services.
Reasons Behind Account Restrictions
Acknowledging that trust is paramount for their business, Ori stated, “Like any fintech, we have set up measures To continuously reveal and lock out clients who we suspect are worried in fraudulent or prohibited activities. He listed reasons that might warrant account restrictions: compromised account security, unusual activity possibly linked to fraud, and activities violating regulatory directives or internal policies.
Ori highlighted that restricting an account was not a decision taken lightly, given the inconvenience it poses to legitimate customers. When an account is restricted, the company initiates internal investigations and communicates with affected customers via email. Ori emphasized that, in some instances, innocent accounts might be affected, but through careful examination, these accounts are eventually unlocked.
Account Restrictions Reversed
Ori further revealed that Payday’s internal systems flagged activities contrary to their terms of use, resulting in the temporary restriction of around 2,000 accounts. While this number represents a fraction of their customer base, he mentioned that over 60% of the affected accounts had already had their restrictions lifted.
Throughout this phase, unaffected money owed endured to characteristic smoothly, executing transactions through virtual VISA/Verve gambling playing cards and making use of services like bill payments and overseas cash exchange.
Issues with Mastercard
Payday disclosed that due to service difficulties, it discontinued its partnership with Mastercard. This byskip impacted customers using Mastercard on Payday’s platform, causing all transactions on their gambling playing cards to be halted.
In light of this issue, Payday ceased its engagement with previous providers and introduced an alternative card, aiming to enhance the Mastercard service experience. To address the situation, Payday informed its customers that they would receive refunds for outstanding card balances, a process expected to conclude within three weeks of the statement’s release.
Customer Dissatisfaction Persists
Despite Payday’s explanation, several customers remain dissatisfied, especially those whose funds have been inaccessible for over 30 days. Some customers have expressed frustration and skepticism, even suggesting that they have fallen victim to a scam orchestrated by the fintech company.
In response to Payday’s statement, one customer, Haydar Ahmad, criticized the platform for withholding funds for an extended period. Ahmad expressed disappointment and discouragement, highlighting the considerable trust placed in the platform when depositing hard-earned funds.
In conclusion, Payday’s CEO has provided insights into the reasons behind account restrictions and the company’s response to customer concerns. However, the company faces ongoing skepticism and dissatisfaction from customers who have been negatively impacted by the restrictions.