Ban on Wirecard's UK payments business lifted
The Financial Conduct Authority (FCA) imposed restrictions
on the company's UK arm after its collapse last week.
Thousands of people could not access their money or make
payments through apps as a result.
"Our primary objective all along has been to protect
the interests and money of consumers," the FCA said.
Customers should now, or very shortly, be able to use their
cards as usual.
Christopher Woolard, the FCA's interim chief executive, told
the BBC's Today programme the FCA had "imposed very strict
conditions" on Wirecard's UK subsidiary based in Newcastle, which had
knock-on effects for about 70 payments firms.
"When we did that we were acutely conscious that there
are some really vulnerable people who rely on those services for example to get
benefits payments paid to them," he said.
Mr Woolard said the FCA had spent the last few days making
sure money belonging to people in the UK was now safeguarded in UK bank
accounts with strict conditions.
"What that means is, if you've got either a card direct
from Wirecard or from one of these 70-odd firms that relies upon them, those
cards should start working today," he said.
On Tuesday morning, Wirecard issued a statement saying some
customers may find themselves unable to make transactions immediately, but the
company anticipated the delay would last no longer than 24 hours.
Several British technology companies were forced to suspend
services due to the FCA restrictions, leaving thousands of accounts blocked.
Online firm Pockit's payment cards, for example, were locked
because they used a payment processing service owned by Wirecard.
Dawn Guilfoyle is one of thousands who were barred from
using their cash cards because of the failure of huge German payments firm
Wirecard.
"It's really bad. I'm left with nothing," she
says. "Once the gas goes off, I'll have none for cooking or hot
water."
Ms Guilfoyle's card, from the online firm Pockit, was frozen
because the FCA wanted to make sure the money is safe.
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