Treasury Committee Demands Abswers From Cashplus Following IT Failures

By cashplus advanced payment solutions via Wikimedia Commons

The Treasury Committee has demanded some answers from Cashplus, a fintech firm, after the outages that left some of its customers unable to make payments or withdraw some cash. It is the latest in a series of disruptions that occurred at various financial firms in the United Kingdom this year.

The customers of the company had complained of being locked out of their accounts since the start of the week and not being able to receive or make payments.

The chair of the influential Treasury Select Committee, Nicky Morgan, has now written to Richard Wagner, the chief executive of Cashplus, demanding for an explanation and asking for the steps that will be taken by the company in order to compensate its customers and prevent a repeat.

She said that the fintech company marketed itself to people that have poor credit histories and small businesses, to whom a loss of banking services would carry “particularly severe consequences.”

Morgan stated: “While Cashplus may not be regulated as a bank, it claims to offer the UK’s most seamless banking services experience.”

She added: “Its customers rightly expect continuous access to their accounts, and it should be held to the same standards of operational resilience as a retail bank.”

On Tuesday, the fintech startup initially issued an apology for the outages that affected its third-party card processor. It said that its team was “working tirelessly” in order to fix the problem.

Earlier today, the firm reiterated its apology and said that its services had already returned to work as normal.

The Treasury Committee has also questioned Visa, TSB, and PayPoint over the service failures that happened in during the past months.

Morgan requested for the submission of a response by 5 in the after on the 28th of September.

Cashplus is not a bank, however, it offers prepaid credit cards and current accounts to approximately 1.3 million customers in the United Kingdom.