OPay, a fintech startup backed by Chinese investment, has received a court order to take legal action due to a system failure that allowed users to make card payments without being charged, resulting in a debt of ₦714 million.
This occurrence, which occurred between December 10, 2023, and March 4, 2024, has forced the corporation to initiate legal action to reclaim the monies.Follow us on Facebook, YouTube(Video update), Telegram, and Twitter (X) for more educational content, relevant news updates, job updates, and scholarship opportunities updates.
According to TechCabal, OPay received clearance from the Federal High Court in Lagos to freeze customer bank accounts across 30 banks as part of the recovery procedure.
OPay filed an affidavit of urgency, which resulted in an order to ban the affected accounts as of June 28, 2024.
The incident was caused by a problem with the financial institutions' transaction categorizing system. Transactions are typically coded as successful, pending, or failed. In OPay, 'RC 09' indicates a pending transaction that should not result in a client debit.
Interswitch's negligence resulted in all 'RC 09 transactions being wrongly resolved as successful.
Interswitch's negligence resulted in all 'RC 09 transactions being wrongly resolved as successful.
After discovering the problem, OPay contacted clients who had made transactions over ₦500,000 without proper debiting.
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The business's court filing states: "While some customers responded positively and cooperated with the Applicant in respect of the recovery of the Erroneously Retained Credits, some customers have refused, failed, and/or neglected to fund their accounts to enable the Applicant to deduct the value of the Erroneously Retained Credits from their respective accounts."
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