MoneySavingExpert (MSE) has urged account holders with a fintech app that is closing down to withdraw their funds “as soon as possible”. The Zero Sustainable Money App, is a UK-based E-Money platform that promised a sustainable alternative to traditional banking, with user funds never invested in sectors that harm the environment.
But the platform announced earlier this month that it had been forced to start winding down its operations after it was unable to raise additional funding. It ceased trading on Wednesday (March 18), and is set to close all accounts. This includes its Zero Personal Account, Zero Debit Mastercard and Planet Safe Saver. The app is expected to remain open until at least Tuesday, March 31.
But MSE, a consumer finance website founded by Martin Lewis, warns this can’t be guaranteed. It’s calling on customers to get their money out immediately, and no later than that date.
A notice to customers on Zero’s website says it has “ceased trading and will be closing”. “Customers have been sent emails with more information,” it adds.
Zero accounts are linked to, and topped up by, existing current accounts, and MSE says you should presumably be able to move any funds back to your bank.
However, as Zero accounts are e-money accounts, you won’t be able to do a switch to a current account under a different provider.
Customers having any difficulties accessing their funds can also email zero@transactpay.com. MSE added that customers should still be able to take their money out after March 31, but it’s better not to wait.
Unlike with traditional high street banks like Barclays or Santander, most e-money accounts aren’t covered by the Financial Services Compensation Scheme (FSCS), which guarantees you money is released within days.
However, E-money apps are regulated by the Financial Conduct Authority (FCA) and there is a requirement for funds in remaining accounts to be moved into safeguarded accounts.
“Transact Payments Limited says any deposits remaining after the app closes will be held for six years, during which time they can be accessed by contacting zero@transactpay.com,” MSE said.
Transact Payments has said says any funds left in accounts after this time may be treated in accordance with applicable laws on dormant or unclaimed funds.
You’ll still have rights to claim funds even after this point, though it can be a pain to claim it. Express.co.uk has reach out to Zero for more info.