Payday, a fintech firm, has responded to the claims of fraud made against it by some of its clients over arbitrary account limitations.
Favour Ori, the company’s CEO, explained the situation in a statement made on the company’s official X account (Twitter) and cited technical difficulties as the cause of the unhappy clients.
He added that the corporation had put limits on roughly 2,000 accounts after suspecting strange actions on its platform.
Ori apologized to the clients for the platform’s previous lackluster customer service and assured them that the business was dedicated to fixing all problems with the Payday platform and earning back their trust.
likewise, he reassured the clients that their money is secure as the business works to fully restore all impacted services.
He also went further to explain the needs for the account restrictions.
“Like any fintech, we have set up measures to constantly monitor and lock out customers who we suspect are involved in fraudulent or prohibited activities. Based on the above, and as required by regulation, there are a number of reasons why we might need to place restrictions on a customer’s account: If we notice that the security of your account has been compromised; If we notice unusual activity that may be linked to fraud; and If your activities violate directives of key regulatory bodies or our internal policies.
“Restricting an account is not a decision that we take lightly, and we handle it with utmost attention and consideration. This is because we understand how inconvenient it is for legitimate customers to be unable to access their funds.
“When we restrict an account, we immediately begin investigations internally. We also engage affected customers via email, while working with the compliance team to get to the bottom of the issue. In some cases, account restrictions might affect innocent people but after due diligence such accounts are unlocked and the customers may continue to transact freely.”
He added that the company internal security flagged some unusual activities that were against the operations of the company and that led to the restriction placed on some accounts.
Even though this number reflects a small fraction of our customer base, the team responded proactively towards the resolution of the issue, and as of today, restrictions have been reversed on over 60% of the affected accounts.
“It is important to note, however, that during this phase, all unaffected accounts have continued to carry out transactions smoothly with our virtual VISA/Verve cards as well as services such as bills payments, currency exchange and so on.”
He also pointed out specific issues with the use of master card which led to the discontinuation of customers with master card from using it services.
“As a follow-up to our previous communication with respect to providing a better experience with the Mastercard service, we discontinued engagements with our previous providers and provided an alternative card pending the conclusion of ongoing reconciliation efforts.
“To this end, we are defunding the existing cards and crediting the outstanding card balances to the affected customer wallets. The entire process should be completed within three weeks from the release of this statement,” the company stated.
His explanations, however, has no bearing in the heart of some customers which led to emotional hurt words like seen on it twits.
“You restrict our accounts for 30 days, and you have the audacity to even say something? What is our offence? Making an exchange when we see a favourable rate in your platform? When does that become an offence? Why did you avail it?
You held my money for more than 30 days now, my hard-earned funds, just because I trust you and deposited money in your platform? I feel so much disappointed and discouraged.”
🔈Update on Account Restriction Claims pic.twitter.com/tM4P87W3UF
— Payday (@ourpaydayHQ) August 21, 2023