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MyPayrollHR closes suddenly and tens of thousands of employees from 4,000 companies lose paychecks

Discussion in 'News & Current Events' started by NightHawkeye, Sep 12, 2019.

  1. NightHawkeye

    NightHawkeye Work-in-progress Supporter

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    From the "Deeply disturbing", files: Payroll company MyPayrollHR closes without warning and tens of thousands of employees from 4,000 companies have their paychecks totaling up to $35 MILLION withdrawn - leaving many unable to pay bills or feed their families

    - The FBI is now investigating after MyPayrollHR, a payroll service provider based in Clifton Park, New York, shut down without warning last week
    - The abrupt closure caused about $35 million worth of paychecks to vanish from the personal bank accounts of workers across the country
    - Paychecks were deducted from people's bank accounts after they had been paid
    - Some workers had their original paycheck amount deducted up to three times, leaving them with negative bank account balances
    - It is not yet clear where the deducted money has gone

    The FBI confirmed on Wednesday it was investigating and said it was seeking information from business owners who may have suffered a financial loss due to MyPayrollHR's activity.
    ...
    The situation involving MyPayrollHR is believed to have started back on September 4 when the payroll company instructed Cachet Financial Services to withdraw about $26 million from employers.
    ...
    The clearing house claims it is a victim of fraud in the MyPayrollHR scandal.

    'MyPayrollHR manipulated the account numbers in that electronic file so that the money was taken out of the employer's account and put into an account controlled by MyPayrollHR, not a Cachet settlement account, as it should've been,' Slavkin said.
    ...
    'Now all of a sudden Cachet is out $26 million because it's effectively made the payroll for all these companies,' Slavkin said.

    Cachet, due to its standard protocol, said they immediately started withdrawing the amounts already distributed to employees to claim back their money
    .
    And now ... finger pointing. :doh:
     
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  2. Nithavela

    Nithavela confused

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  3. Dave-W

    Dave-W Welcoming grandchild #7, Arturus Waggoner! Supporter

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    Wow. How 1960s and 70s of them.
     
  4. LaBèlla

    LaBèlla ❣️ His little lady ❣️ Supporter

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    This is terrible. Many households don’t have a safety net in place to weather the lapse in income. I hope the authorities move swiftly to restore the missing funds.
     
  5. Dave-W

    Dave-W Welcoming grandchild #7, Arturus Waggoner! Supporter

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    Plus all the bank fees for NSF and overdraft.
    The $100 per employee is way short.
     
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  6. NightHawkeye

    NightHawkeye Work-in-progress Supporter

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    Yep. This is the nightmare scenario some have warned about. With e-currency, it gets even worse.

    Notice that the real problem here is that multiple companies are pointing fingers. It appears that money was siphoned off (embezzled?) by MyPayroll but it may actually have been another company. The clearinghouse, for example, suctioned money back up from employee accounts with great abandon.
     
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  7. Aussie Pete

    Aussie Pete Active Member Supporter

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    Isn't technology wonderful? It used to take a gang with guns robbing a bank to get big money. Now it's someone with a computer and a keyboard. Our government is driving people away from cash and attempting to force us to use electronic transactions only. We used to say, "safe as a bank". I don't know about that any more.
     
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  8. NightHawkeye

    NightHawkeye Work-in-progress Supporter

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    I've been robbed by banks a few times in my life. It's not fun, though I always got the money back.
     
  9. LaBèlla

    LaBèlla ❣️ His little lady ❣️ Supporter

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    Sometimes the easiest solution isn’t always the best. And we get what we pay for. ADP’s fees may be greater but reliability is a must.

    Look at the domino effect of their deception. Other businesses are negatively impacted.

    I understand the clearing house’s actions. It is a large sum. But I don’t know if I would do the same if we had the resources to float the disparity (without harm) while the authorities recovered the funds.

    This is a situation where loving-kindness and empathy are required. And I believe the Lord would support that choice.
     
  10. Speedwell

    Speedwell Well-Known Member

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    In the long run, the biggest hit will be to the employers, who have ultimate legal responsibility for paying wages for work done.
     
  11. paul1149

    paul1149 that your faith might rest in the power of God Supporter

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    It sounds like multiple counts of gross incompetence by Cachet, the clearing house, who in the end did what was right and canceled the reversals and released the funds; and brazen larceny by mypayrollhr. The victims can easily get their checks now, and it's pretty standard, but not obligatory, for banks to cancel bounced check fees in cases like this - that is, if they want to retain their customers. I'm sure Cachet will be tightening up their security procedures several notches, and I hope the cold-hearted perps are quickly brought to justice.
     
  12. wing2000

    wing2000 E pluribus unum Supporter

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    Technology is not to blame for the actions of greedy people and negligence of those who didn't employ proper oversight.
     
  13. Speedwell

    Speedwell Well-Known Member

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    Yes, as through this world I've wandered
    I've seen lots of funny men;
    Some will rob you with a six-gun,
    And some with a fountain pen
    --Woodrow Wilson Guthrie (1938)​
     
  14. Tanj

    Tanj Redefined comfortable middle class

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    Tangentially, I'd rearrange your comment to:
    "Many households don’t have a safety net in place to weather the lapse in income. This is terrible."

    The lack of financial planning amongst human beings is utterly perplexing to me. I fork over $1000 to my brother a few times a year to overcome his inability to budget within hand to mouth, let alone beyond.
     
  15. LaBèlla

    LaBèlla ❣️ His little lady ❣️ Supporter

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    It is correctly stated as the event is terrible. There’s a difference between mismanaging resources and having little at your dispense. Both may live paycheck to paycheck for different reasons.
     
  16. Jonathan Walkerin

    Jonathan Walkerin Well-Known Member

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    Well at least for now you are quite allowed to transform all of your possessions to gold bullions and then sleep over it. Also I am not sure if you are aware but your money is not tied to any value either so it could basically be worthless at any moment.
     
  17. iluvatar5150

    iluvatar5150 Well-Known Member

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    The same is true of gold.
     
  18. Arcangl86

    Arcangl86 Newbie

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    Isn't gold famously volatile in value?
     
  19. iluvatar5150

    iluvatar5150 Well-Known Member

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    I don't know if I'd call it "famously" volatile, but yes, its value is volatile - certainly moreso than the US dollar. But that doesn't seem to get in the way of libertarian conspiracy theorists who fantasize about gold being a safe haven against the coming Fed-driven apocalypse due to its "inherent" magical properties.
     
  20. NightHawkeye

    NightHawkeye Work-in-progress Supporter

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    The so-called safe haven value of gold exists because gold has inherent value, for a variety of reasons.

    It's not just that gold is rare and difficult to extract when found, it's also that certain physical properties of gold are in a class by themselves. In short, for a variety of reasons gold is in demand and people are always willing to pay for it. The same can't be said for crypto-currency, nor is it inherently true for any government's currency, though the US currency has withstood the test of time rather well.
     
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