By Aisling Finn on Monday 2 March 2020
The financial service is backed by Sir Alex Ferguson and venture capitalist Jon Moulton.
Pockit, a ‘challenger bank’ that provides vulnerable people with financial services, has received a flurry of claims that it’s locking accounts and withholding customer funds.
The fintech startup currently has more than 500,000 customers across the UK, with several complaining they have been locked out of their accounts without being told why meaning that they are struggling to pay bills and get to work.
Following the claims, Pockit released a blog post to inform its customers why their accounts might be locked, stating: “As a financial institution, we have to follow rules and codes of conduct set by the Financial Conduct Authority.”
“These rules are created with an aim to prevent money-laundering and terrorist financing. We have a legal obligation to restrict the account in order to protect you and your money from any potential financial crime.”
Despite this statement, Pockit customers have claimed that their money has been locked in their accounts for several weeks without explanation from Pockit.
Pockit has also been experiencing difficulties with its customer services and many customers have had calls cut off and aren’t receiving emails about their locked accounts when they should be.
It is important to note that Pockit doesn’t have a UK banking licence because they issue pre-paid cards, rather it is regulated by the FCA meaning that any money deposited into Pockit accounts are not covered by the Financial Services Compensation Scheme (FSCS).