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When cloud payroll provider MyPayrollHR abruptly closed its doors amid fraud allegations last month, it sent its roughly 1,000 clients, many of them small businesses, into disarray as employees saw their paychecks disappear from their accounts. The fallout continued this week after MyPayrollHR's third-party processor, Cachet Financial Services, announced it was no longer handling payroll transactions.
According to multiple reports, Cachet sent out an email to clients this week stating: "With extremely heavy hearts, we regret to inform you that after Friday, October 25th, Cachet will no longer be able to process your ACH activity."
Payroll companies associated with Cachet will now have to find another way to route funds to employees' bank accounts, as the company "will not handle any further wires, effective immediately." The company did not immediately respond to Gizmodo's request for inquiry.
So my fine soylentils, does anyone work for a company that used MyPayrollHR, and if so, how has this impacted you?
Source: https://gizmodo.com/employees-continued-to-get-screwed-by-mypayrollhr-fiasc-1839383187
(Score: 0) by Anonymous Coward on Tuesday October 29 2019, @01:58PM (3 children)
How would that just not lead that account to be in the negs, minus a $50 additional charge?
(Score: 4, Informative) by pendorbound on Tuesday October 29 2019, @02:59PM (1 child)
That can still happen. It's a lot easier to argue with the various banks involved when you still have your paycheck safely accessible in the other account with a theoretical negative balance in the shield account. This way you can still pay your rent while you're arguing. That said, it wouldn't surprise me if a lot of banks reserve the right to claw back the money to cover an overdraft from any linked account leaving you screwed anyways.
(Score: 2) by Booga1 on Tuesday October 29 2019, @09:57PM
At the time I left Wells Fargo, that was basically the policy. I asked them to simply deny transactions that would overdraft my account when using my debit card. They refused.
I had previously setup some "overdraft protection plan" that linked to the savings account. I asked if discontinuing that service would allow me to have my transactions declined. They said, "No. After that service is discontinued the overdraft will still automatically pull from the savings account. Instead of a $5 funds transfer fee, you'll have to pay the $30 overdraft fee."
Wells Fargo...can't believe anyone still uses them.
(Score: 1) by nitehawk214 on Tuesday October 29 2019, @09:02PM
If the withdrawal is fraudulent, you won't need to pay the fee.
If it was an actual payment, well... be more careful. Or, get a bank account with overdraft protection.
"Don't you ever miss the days when you used to be nostalgic?" -Loiosh