Taranjeet Singh would like to pass on a warning about prepaid banking service Cashplus. He signed up for the service because PayPoint recommended it, and because it was cheaper than Barclays.
When he rang me he was in a stew over the way Cashplus had screwed up his direct debit to PayPoint.
A few weeks ago he was due to pay PP £18,537, but then learned that Cashplus had set a maximum balance of £15K. Cashplus told him that he would need to apply for an increased limit and then went on to close his account, following which PayPoint switched off his terminal.
It meant a huge amount of scrabbling around to cover the direct debit (via credit cards and loans from family) and as this is being written Cashplus is still holding on to £10,429 of his money which he cannot access. They told him they would be releasing a cheque to him, but it is a 30-day process.
He told me, and PayPoint, that the direct debit would continue to fail until he was set up again with Barclays and that he would cover each payment to PP manually.
He asked me to contact PP to reinforce this message, because he was very worried about getting cut off. He was also hoping that PP could put some pressure on Cashplus to return his money quicker.
On this occasion I didn’t get very far with PP. They said: “We are looking into it and have flagged to Cashplus. As I’m sure you will appreciate, Cashplus are unable to discuss any details of their customer’s account with us.”
Taranjeet accuses Cashplus of poor communication with customers and says: “I don’t want any other retailer to suffer this. PayPoint shouldn’t recommend them.”