Change of Card Issuer and effective regulation

Just received an email from Tymit saying that “for the past three months, we’ve been working hard to upgrade to a new issuing provider. From 23rd November, all Tymit cards will be issued by Transact Payments Ltd, replacing our previous issuer. *You’ll be issued a new Tymit card, which will arrive in the post.

No new Terms and conditions were attached to the email as stated but the online T&C suggest that the new issuer is located in Gibraltar.

Transact Payments Limited (the Issuer, TPL) being a company incorporated in Gibraltar with registered address 6.20 World Trade Center, 6 Bayside Road, Gibraltar, GX11 1AA and company registration number 108217. TPL is authorised and regulated by the Gibraltar Financial Services Commission as an electronic money institution.

Can you confirm please that the change of domicile of the card issuer in no way limits or affects our protections under UK law and that the FCA, as principal regulator of Tymit, are content that the issuer need not be UK domiciled for its (the FCA’s) regulatory supervision of Tymit, and Consumer protections to be effective?

Thanks

Mike

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Hi @ninepine, thanks for your question and raising a very important point!

I want to start by apologising for you not receiving the new Terms and Conditions (T&C), sadly, these didn’t make it to the email due to issues with generation. You’ll receive a copy of the new ones once we issue your card.

I can confirm that the location of our card issuer doesn’t impact the current protection that all Tymit customers benefit from under UK law.

The T&Cs plus the credit agreement are extended by Tymit, agreed and signed all in the UK.

We’re a UK company that’s regulated by the FCA and we will continue to provide service to our customers with the relevant consumer protections and much more.

The team and I are confident that with these new capabilities, we’re going to be able to provide a much better service with added features that will come soon.

I really hope that this clarifies your question, but please do reach back out if you have any more!

Have a great week ahead :blush:

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Hi @Iqra

Thanks for replying.

While I fully accept that Tymit is a regulated UK company and have all the relevant protections this question concerns the issuer and its regulation.

Are you confirming please if the FCA are aware and content that a non UK issuer is involved? This is relevant because the Wirecard failure highlighted the importance of the issuer in the regulatory chain. The FCA would not appear to have oversight of the new issuer.

Separately, I take it from what you say that the Section 75 Consumer Credit Act liability rests with Tymit?

Thanks.

Issuers aren’t regulated in the same way as other entities in payments. Wirecard happened in an extremely well regulated first world country (Germany) so there’s no guarantee of protection if the issuer was UK bound or not.

From memory, Tymit was one of the quicker organisations to get back up and running (without issuing cards).