to be annoyed by being paid for work via a pocketmoney card?

[hamptonhangingpork]

Just want to see if I am being unreasonable here.

I've picked up a job as a Christmas Temp at Tesco this Winter, gave in my bank details as requested for being paid as per the letter contract.

However, in the post today, I've received a Tuxedo prepay card. Yes kids, the same thing you'd give your teenager. I will be paid through this pre-loaded card to save Tesco on their administrative fees.

Infantilising at best I know, however I could suck it up were it not for the fact that it will cost me money to use for bills, direct debits etc. etc. I know I can use it in the shops, but I feel like it's an extra burden on those of us who are picking up extra hours working in a shop. You know, just to pay bills.

What do you think? Has anyone else had this experience?

And for the record, no, the pocketmoney card was not mentioned at all in any of the recruitment gumpf, contract or anywhere outside a Google search which has yielded that Tesco are using it for their temp staff.

Oh good grief, I hadn't thought of that.

I've just Googled: it was Farepak which infamously collapsed in 2006. Family Hampers went bust, causing Choice Gift Vouchers to go bust, causing Farepak to go bust (and Park Group were affected by the loss of confidence, IIUC).

Reading a couple of articles, the Christmas clubs weren't covered by the (then) FSA because they technically weren't holding money but promises for goods. Legislation has now been passed to force Christmas clubs to ringfence.

No idea what the current law is on this, or whether it would pertain to Tuxedo. The website does say the Tuxedo pre-paid cards are regulated by the Financial Conduct Authority; I don't know what that means in practice.

But it's a good question, isn't it? What are the failure cases here?

smogs (if OP agrees) i think the thread title needs changing. Its flying under the radar.

Tuxedo are required to safeguard client funds by the FCA - this means that they are held in segregated accounts and customers will receive them back if the firm defaults. This is in lieu of them being covered by the Financial Services Compensations Scheme.

So funds should be safe - but agree with points around ease of accessing the funds and charges for withdrawal and transfer making this a very unattractive way to be paid.

The Farepak savers never got their money back.

Usdaw have been tweeted about this Yet to reply though.

Farepak wasn't an authorised e-money institution. Not a valid comparison at all.

WaxyBean, thanks for explaining how the FCA regulation works.

There will be Tesco workhouses next. You'll live in warehouse dormitories above the shop, and be fed and clothed from their product range.

Helena yes I think you’re right about under the radar title. This is surely a massive issue. Makes me think of stuff like prepayment meters - taking advantage of people who might be less able (massive generalisation) to demand normal rights.

Oh Just clocked that OP has been getting withheld no calls and payday loans junkmail.

Sorry missed that earlier.

How completely disgraceful! Makes me feel like shopping at Tesco and paying them with a Sainsburys/Asda/whoever gift card. Glad you are out of it OP .

I have had a response from Tesco CEO office. I don't think it takes us any further on from the publicly available materials others have posted - but have copied and pasted it below

"Dear Miss Aridane

Thank you for your email to Dave Lewis. I hope you don’t mind me replying on his behalf.

I’m sorry you are concerned about the way some of our colleagues are paid.

Our policy is to pay colleagues directly into their nominated bank account. However there are some occasions, although rare, when a colleague is unable to open a bank account for legal reasons.

In this situation, we want to support colleagues to access their pay and the Tuxedo service enables us to do this. In these circumstances only the People Manager will authorise payroll to provide colleagues with a Tuxedo Prepaid MasterCard.

I hope this addresses the concerns you have.

Once again thank you for contacting our Chief Executive’s office.

Kind regards

Fiona Black

Customer Service Executive to the Board

From: Aridane

Sent: 15 November 2017 15:29
To: Lewis, Dave

Subject: Paying staff via a Tuxedo Card

Dear Sir

I was astonished to learn that since at least 2010 you have been paying short term staff via Tuxedo card, even though staff have bank accounts. What possible justification can there be for paying staff other than in their bank account.

It is a shoddy way to treat staff - and you will see the universal condemnation of this practice on the Mumsnet forum - www.mumsnet.com/Talk/am_i_being_unreasonable/a3086713-to-be-annoyed-by-being-paid-for-work-via-a-pocketmoney-card?msgid=73380510#73380510.

I doubt I will get a response - but I just wanted to register my dismay and disappointment at this practice.

Regards

Aridane

The only reason someone couldn’t have a basic bank account, for legal reasons, is if they are unable to prove identity or eligibility to work in UK.

Both of which would preclude them from reputable employment too.

What a load of bollocks from Tesco.

In these circumstances only the People Manager

"People manager"

Sorry, that far up the chain is it wrong to expect better English ? Especially in a letter which could very well end up before a court ?

Looks like Tesco is skimping where it can. Let's hope the shareholders don't have to suffer. Maybe turn the heating down in the stores, and redesign so customers have to walk further and heat the place themselves ?

I can’t see a problem with People Manager as a job title. It’s fairly common across many industries.

This is an absolute disgrace - just adding my comment to keep the thread bumped.

I can’t see a problem with People Manager as a job title. It’s fairly common across many industries.

I need to get out of the server room more often ...

Thanks for posting, Aridane. I think you have achieved something with that, because you now have a repetition of the untruth that only people without bank accounts are being paid this way, in writing from a named person in the Chief Executive's office.

Ms Black's statement directly conflicts with Tuxedo's puff piece saying Tesco planned to use it "for staff without bank accounts or employed on short-term temporary contracts"
www.tuxedomoneysolutions.com/our-partners/clients/tesco/

And they're "issuing on average 30 new cards a week to Tesco employees." Over 1500 more employees every year supposedly without bank accounts. Over 4500 in the three years we know of it running. Does that sound likely?

The fact these numbers exist and Tuxedo is even publicising them, mean that Tesco can't pretend this is some small misunderstanding by an individual store manager - unless that number really does match the number of employees Tesco were paying by cash before.

If the number of Tesco employees being paid by Tuxedo exceeds the number previously being paid by cash... that should have been a red flag for both Tesco and Tuxedo that it was not being used just for employees without bank accounts.

LurkingHusband

bump.

A timely article:

Money changing
Everything we knew about money is up for grabs. So will we end up smiling?
www.bbc.co.uk/news/resources/idt-sh/The_disruptors_money_changing

Keven Peachey, the reporter, might be another person worth tweeting this thread.
@ PeacheyK twitter.com/peacheyk

Blockchain will be the biggest disruptor when enough people realise what it is.

This thread has grown by approximately 20 posts since I bookmarked it yet I am unable to see any further posts?

I've already boycott Asda, now Tesco!

Money is old... it is being replaced by Data. Electronic payment systems can track your spending, it's that data which seems to be the new commodity which is so valuable. Very hard to track cash.

Are these new payment systems bad, no, as long as users know the costs involved. All transactions have a cost, even cash but until recently that cost has been absorbed by the retailer or the banks. Now some of the payment systems make the user pay. Is this the end of free banking? It's never really been free... just look at the interest rate you get in your current account, or the interest you pay on any debts.