On Monday, August 21st, the Twitter account @PIDOMNIGERIA created a stir with a tweet that called out Favour Ori, the founder, and CEO of PayDay, for his alleged involvement in illicit financial activities through the app.
The tweet accused Ori of manipulating exchange rates, enforcing restrictive fund withdrawal policies, and ignoring customer complaints, leading to a loss of funds and trust among Nigerians and other unsuspecting users across Africa.
The accusations in the tweet centered on various issues including questionable exchange rate practices, the imposition of strict limitations on fund withdrawals and transfers, rendering customer funds inaccessible, and a lack of responsiveness to customer grievances.
Many individuals had either lost their funds due to account restrictions or had opted to leave the platform altogether. Among the replies, one Twitter user highlighted that this was just one instance in a series of scandals linked to the company’s founder.
Favour Ori, the CEO of PayDay, has faced public accusations of similar offenses before. The comments section under the tweet was flooded with accounts from affected customers sharing their negative experiences. About two months prior, Technext had published a report highlighting a string of customer complaints. These complaints revolved around instances where users fell victim to scams while using the platform, resulting in unauthorized deductions or discrepancies in displayed fund amounts.
Unfortunately, the impacted users had not received any compensation or refunds despite the unauthorized nature of these transactions. A source who was both a user and a cybersecurity expert pointed out that the PayDay app suffered from numerous glitches and bugs that adversely affected its functionality.
PayDay’s Response to Allegations
In light of the recent allegations, PayDay has taken steps to address the concerns surrounding the widespread account limitations that many customers have faced recently.
Favour Ori stated Technext, clarifying that the negative experiences were largely a consequence of technical issues involving the company’s service providers. According to Ori, these technical challenges directly impacted the quality of service, leading to the reported problems.
In his statement, Ori expressed apologies for the recent poor user experiences on the PayDay app and attributed them to ongoing technical problems with service providers. Despite this, he assured customers that the company was committed to resolving existing issues and rebuilding trust.
The CEO also disclosed that PayDay had identified around 2,000 accounts engaged in suspicious activities and had temporarily restricted access to those accounts. Ori emphasized that accounts could be flagged for various reasons, including detection of unusual behavior suggestive of fraud, non-compliance with regulations, and security compromises.
Ori outlined that while innocent accounts might be affected, they would be unlocked after a thorough examination, allowing customers to continue their transactions. Regarding card transaction errors, the company severed ties with previous card service providers, opting for a different temporary card option while working on resolving reconciliation matters.
As part of this transition, the company would cease support for existing cards, transferring the remaining balances to respective customer wallets. This process aimed to conclude within three weeks of the statement’s issuance.
PayDay assured customers that their funds were secure and pledged to provide regular updates on progress. Despite these efforts, a significant number of users still reported difficulties accessing their accounts and receiving One-Time Passwords (OTPs).
In response, PayDay acknowledged the inconvenience and encouraged users to try again, offering assistance through their in-app chat. This response was posted approximately 10 to 9 hours after users expressed their concerns on social media.
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