The UK’s Financial Conduct Authority obliged all e-Money companies to inform their customers about the protection of their funds. Yesterday, ePayments' clients received a new message explaining how their funds are protected.
We give an excerpt from this letter:
The e-Wallet enables you to make payments to other users, and load a prepaid card for use with merchants both online and in store. The service is authorised by the Financial Conduct Authority (FCA) as an electronic money account. This means that the money that you have in your e-Wallet account is backed by physical money that we hold in a separate bank account, known as a “safeguarded account”. This “safeguarded” money is held separately from any funds belonging to ePayments, and is only available for the purposes of customer transactions, giving you access to your money, at your request. This separately held money is also not available to our creditors, our bank or other third parties. Subject to us being fully operational, it means that whenever you ask us to redeem (withdraw) your e-money, that money will be available for you.
This protection has continued to be in place throughout our suspension, and will continue to be in place in the future. Whilst we do not plan to close, if our business were to wind-down the protection will still operate; this is because that money will continue to be held by the independent financial institution looking after the “safeguarded” funds, and will not be available to third parties. However, some of these funds may be used by an administrator if we become insolvent, and in that event, the total of funds available to our customers and, therefore, to you may be decreased by that amount.
The platform did not specify any timeline for its relaunch. Read more what is happening with the payment platform in our previous publication.