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US Funds Frozen | Ultralight FS/Obopay Inc. issue

Chris_PayzaChris_Payza Posts: 311Member, Administrator, Moderator, Content Specialist admin
Hi Community,

As you may or may not already know, we are unable to complete any requests to withdraw or transfer funds for a part of our U.S. members at this time, as they are currently being held in an account belonging to Ultralight Financial Services, formerly known as Obopay Inc., a licensed U.S. money transmitter of which Payza was an agent.
 
For affected members, further information is available in your Payza accounts.

We apologize for the inconvenience, more updates will follow.

Comments

  • EvocatiEvocati Posts: 2Member
    I wrote to Ultralight and they informed me of the following:

    Attention MH Pillars dba Payza customers:

    UltraLight FS terminated our relationship with MH Pillars dba Payza in early June, 2013. The US Department of Homeland Security subsequently seized all MH Pillars dba Payza money on deposit with UltraLight FS. If we receive additional information from the US Department of Homeland Security we will publish to our website.


    I then made further inquiries to see who in DHS I could talk to about this and was sent this in reply from Ultralight:

    We will update our website when we get information from DHS. Your agreement is with Payza though. We have not had a commercial agreement with Payza since early June, 2013. I assume Payza processed your payments recently as we had no relationship since June, 2013.

    So, if I understand this correctly, Ultralight says they would not have had anything to do with my funds.

    This situation is very confusing. Some clarification would be nice. I need my funds and I have been deprived of them by someone, without due process.




  • newakinewaki Posts: 7Member
    why haven't you answered his reply? Are you guys this hard pressed for money so your stealing you users cash? Its always something with this website. Mass residents can deposit money and that is it. not "half" of the us has their account frozen for no good damn reason and your response is "its not us, talk to company abc". Very unprofessional!
  • EvocatiEvocati Posts: 2Member
    This is found on Ultralight FS's website:

    FOR PAYZA CUSTOMERS:

    The notification provided on Payza's website concerning funds you have on deposit with Payza is false and misleading. Ultralight FS (formerly known as Obopay) does not have any funds belonging to Payza or Payza's customers. Any claims for funds should be directed to Payza where your account was established and administered.


    Payza, what do you have to say about this???

  • SusiBSusiB Posts: 1Member
    As far as I am concerned my money has been stolen..
  • newakinewaki Posts: 7Member
    EXACTLY SusiB, they are scamming us! I posted a thread with more depth stuff that i have.. if you would be kind to go over and post anything you have there and Evocati too please!

    community.payza.com/discussion/178/frozen-accounts

  • Chris_PayzaChris_Payza Posts: 311Member, Administrator, Moderator, Content Specialist admin
    Hi everyone,

    More detailed information: For licensing purposes, Payza was an agent of Ultralight Financial Services, formerly known as Obopay Inc., a licensed U.S. money transmitter, so we can provide money transferring services to a good part of our U.S. members.

    Ultralight Financial Services/Obopay Inc. controls the bank account where the funds are located. Back then, the process was if you wished to add or withdraw funds, we would automatically send this request to Obopay Inc. and they would do it for us. Currently, Obopay is simply not cooperating with us and not releasing the money that are found in their bank account.

    For that reason, we're asking our affected members to contact their respective state regulators to intervene and allow us to transfer your funds to your bank account immediately.
  • jimmieljimmiel Posts: 1Member
    pretty good ambush on quit a few accts. I do have a very good lawyer which has told me ,if not soon taking care of its in order for paper & court proceedings.
    this frozen acct bit has cost me money in certain programs.
    The old saying is payme now or payme later..plus cost.
    have a good day with my money........
  • Chris_PayzaChris_Payza Posts: 311Member, Administrator, Moderator, Content Specialist admin
    @jimmiel: If we had a way to send your money back to you right now, we would. However as clearly mentioned and explained in my previous comments, it is unfortunately not possible for the moment. Please contact your State regulator if you haven't already. Your patience and understanding is appreciated.
  • bingojaybingojay Posts: 5Member
    Well, it has been more than a month and could anyone post any updates? I don't even know what is a state regulator? Do you mean police? Has anyone is the U.S successfully withdraw the funds? The blog used to has updates about the frozen funds, but obviously, not any more.
  • SebastianSebastian Posts: 9Member
    bingojay, by state regulator Payza means state financial regulatory department as far as I understand. Like... I live in Florida and in my state it will be Florida Office of Financial Regulation. Which state are you in?

    In the meantime, Florida has suspended Obopay's license and Obopay is no longer a licensed money transmitter in the state of Florida. Other sources also advise that Obopay has no business in the state of Utah due to license suspension as of Oct. 30th last year. Also one of the sources suggests that several states and federal government are currently looking for a solution to the problem.

    All in all, looks like feds are shutting Obopay down and Payza will need to come up with a new money transmitter in order to operate in the U.S. Might take some time, but Payza will live. Things are going pretty good for them in this dispute.
  • bingojaybingojay Posts: 5Member
    @Sebastian, I have $5,000 at stake. I was planning to do some currency exchange to buy bitcoins. Now the opportunity has gone and I don't even have access to my money. So "some time" feels years to me.
  • newakinewaki Posts: 7Member
    why is payza allowed to do other things in the USA when they STILL haven't fixed the issues they caused with their prior USA Clients. They are now allowed to do Credit Card Transactions. My god how long will it be, before "something happens" and money goes missing with this venture.

    I strongly advise that no one from the USA does any business until Payza does right and fixes the issues they have caused for thousands of their clients that they tossed to the side of the road.
  • Don_PayzaDon_Payza Posts: 13Member, Moderator, Content Specialist mod
    Hi @newaki

    Payza and the Payza Gateway are 2 different products. With the Payza Gateway, funds are sent directly from the credit card to the merchants account. We only act as a payment processor and will not hold onto a Payza Gateway transaction.

    We have not forgotten about our US customers and we are working as fast as possible to resolve the issue. Unfortunately, we have not received any updates as to when the service will resume. Please rest assured that the funds will stay inside the Payza account.
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