Business

Morses suspends UK accounts in wake of Wirecard scandal

Wirecard: German corporate scandal
Wirecard website
Simon English @SimonEngStand
29 June 2020

THE scandal at the once huge German payment services company Wirecard was spreading in the UK today, when doorstep lender Morses Club said online accounts have been suspended.

Morses, which has about 250,000 customers in the UK, said it is in talks with the Financial Conduct Authority to resolve the situation.

Wirecard is the card issuer and banking partner for a digital arm of Morses called U Account.

Customers presently cannot access their cash, though Morses insists it is not at risk in the longer term.

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Other UK fintech firms have also suspended services in the wake of Wirecard’s collapse with debts of €3 billion.

Paul Smith, CEO of Morses Club, said, “We understand the frustration and distress that the requirements imposed on Wirecard UK by the FCA are causing our customers. We are in regular contact with the FCA and Wirecard UK to understand the situation and find a swift resolution for our U Account customers. While our customers’ money is not at risk, we understand the difficulty this temporary suspension is causing our customers and we are working tirelessly to find a solution.”

Morses shares fell 8% to 45p, which leaves the business valued at £59 million.

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