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18 April 2017 - Simple bank forced to ask customers to close and reapply for accounts
Simple Finance Technology Corp.Source - https://www.finextra.com/newsarticle/30439/simple-bungles-customer-account-transition-to-bbva?utm_medium=dailynewsletter&utm_source=2017-4-19Where -
United States of AmericaBusiness line -
US digital bank Simple has been forced to ask customers to reapply for their accounts due to a “clumsy” transition over to its new owner, BBVA Compass.
The bank announced plans to transfer all of its customer accounts over to BBVA Compass a year ago as the first user of the Spanish bank’s application programming interface (API).
In a letter to a number of its customers, the bank said: “We have to close your Simple account on May 15 because we're not able to move it to our new partner bank, BBVA Compass…Due to logistical issues on our end, we weren't able to start moving your account in time. Now that we're approaching the end of our relationship with our current partner bank, we have to close all the accounts we haven't moved yet - including yours.”
All affected customers have been advised to cancel any automated payments, withdraw all cash and then reapply for their account, if they still want it.
“If you can look past our clumsiness with this move and you'd still like to bank with us, we'd love to have you, though we can't keep this account open, you can apply for a new one as soon as we've finished the closure process,” said the letter.