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Post by mindful on Jul 17, 2017 11:58:14 GMT
Today I queried whether taking 3 working days to complete a withdrawal, when funds have been cleared and the bank account verified, was reasonable. The response was:
"Unfortunately the debit card situation is still an issue regardless of whether the bank account is verified or not. This falls under the CASS rules which stipulate funds have to have cleared into our account before we can allow investors to withdraw the funds back out, essentially preventing us allowing one investor to withdraw another investors money from our Client Money Account whilst we are waiting for the funds to clear.
In addition to this, even after an account is verified there is always still a risk of money laundering. This is something we take seriously and make every effort to prevent.
It is up to each individual FCA company to take the relevant precautions they feel necessary and to do so within the rules and regulations set out by the FCA. We consider that our approach is best suited for our company and also best protects our customers. "
Not being a financial expert I wonder whether this is reasonable, or the justification valid. The cynic in me says PP have 3-5 days of my money interest-free. To be devil's advocate are Collateral, who process withdrawals within hours, or Funding Circle, who pay the next day, being irresponsible?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 17, 2017 13:16:03 GMT
Today I queried whether taking 3 working days to complete a withdrawal, when funds have been cleared and the bank account verified, was reasonable. The response was: "Unfortunately the debit card situation is still an issue regardless of whether the bank account is verified or not. This falls under the CASS rules which stipulate funds have to have cleared into our account before we can allow investors to withdraw the funds back out, essentially preventing us allowing one investor to withdraw another investors money from our Client Money Account whilst we are waiting for the funds to clear. In addition to this, even after an account is verified there is always still a risk of money laundering. This is something we take seriously and make every effort to prevent. It is up to each individual FCA company to take the relevant precautions they feel necessary and to do so within the rules and regulations set out by the FCA. We consider that our approach is best suited for our company and also best protects our customers. " Not being a financial expert I wonder whether this is reasonable, or the justification valid. The cynic in me says PP have 3-5 days of my money interest-free. To be devil's advocate are Collateral, who process withdrawals within hours, or Funding Circle, who pay the next day, being irresponsible? Collateral arent a valid comparison becuase they arent using debit card payments so there isnt the issue of funds potentially not being cleared like there is with PP (MT the same). The biggest proponents of the CASS cleared funds argument have always been AC, who despite not accepting debit cards, advise that withdrawals will take two days to be processed. FC being a larger operation may have procedures to verify withdrawn funds are cleared down the line. The justification is perfectly valid as the CASS rules are clear that funds should be cleared which with a debit card they arent in the same way a direct bank transfer would be. Is it reasonable, on balance yes, as 3 days has always been the timescale for a transfer via BACS until the introduction of FP, not all banks can do FP, and while its possibly on the longer end of the spectrum amongst platforms its not unique. Wellesley take 3 days to makes small payments, Zopa take 3-4 days (both again dont accept debit cards so dont even have that excuse)
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Post by mindful on Jul 17, 2017 13:30:37 GMT
Many thanks ilmoro. Always grateful for a second independent opinion.
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snowmobile
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Post by snowmobile on Jul 19, 2017 12:37:48 GMT
Ablrate also accept funding by debit card and I'm pretty sure it doesn't take as long for withdrawals there. I can understand the issue if the funds have been deposited by debit card within the past 3 days, however I would have thought that in most cases that does not apply.
As faster payments are becoming more widespread there is an expectation that withdrawals should be faster. Ultimately I suppose, as long as the platform clearly states the timescales involved, it is down to each investor to decide if that is acceptable to them or not.
I have noticed that new properties are closing on a Wednesday. Therefore any funds not invested (due to scale back) and withdrawn are unlikely to arrive before the following Monday at the earliest. The cynic in me says that is a deliberate ploy to encourage investment in the next new property, rather than withdrawal.
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