K Ring Closure - FAQs
Moorwand terminated its contract with K Wearables on the basis of multiple breaches of the agreement between the Parties. This involved but was not limited to the payment of debts due.
Thereafter, it came to Moorwand's attention that K Wearables had continued to trade whilst having a number of unsatisfied creditors and County Court Judgments against it. It is a criminal offence for a company to trade whilst insolvent, is irresponsible and is not in keeping with the high standards that businesses operating in the financial sector should uphold.
As such, to protect the public, Moorwand proceeded to apply for a winding up petition against K Wearables. Moorwand did this in the knowledge that it would it was likely to cost money in legal fees and unlikely to recover its legal costs and contractual losses but to prevent any further harm to the public. On 27 February 2023, the Court dismissed the Petition issued by Moorwand to wind up K Wearables. The Judge concluded that K Wearables was entitled to have the opportunity to bring a claim against Moorwand in relation to the debts it owes Moorwand.
Although Moorwand believes that judgment was based on errors of fact and law, there is no commercial justification for it to pursue an appeal against a company that will not be able to pay the significant legal costs that Moorwand has and will continue to incur.
Moorwand denies the allegations that have been made against it by K Wearables and will rigorously defend any claim in Court should one ever be made.
It remains the case that K Wearables card programme with Moorwand is closed, and K Wearables is not authorised by the FCA to accept deposits from members of the public. Moorwand acted in the public interest and that of other businesses and individuals owed money by K Wearables in attempting to have K Wearables wound up. K Wearables still has unsatisfied CCJs, it still has not filed its long outstanding accounts with Companies House and it still has a list of unsecured creditors (including HMRC, its former staff, former third party providers and its banking provider, in addition to Moorwand).
Any K Wearables customer who has lost money as a result of being induced to making payments directly K Wearables (taking money for orders or top ups that were not honoured) should contact Action Fraud or Trading Standards or seek legal advice.
Moorwand is authorised by the Financial Conduct Authority (FCA) to provide payment services and issue electronic money. Moorwand took over the issuance of the K Wearables payment accounts in April 2020. As a regulated payment service provider Moorwand has a regulatory obligation to ensure the products and services it provides do not harm customers.
Due to K Wearables’ actions, Moorwand has had to take steps to close the product in order to prevent the potential for customer harm. This decision has not been taken lightly and Moorwand is working to resolve a number of issues, and the customer outcome is of paramount importance.
Moorwand provides the issuance of the payment account and protects relevant funds it receives in line with its responsibilities under the Electronic Money Regulations 2011 and relevant guidance from the FCA. Moorwand issues a virtual prepaid card (payment instrument) and settles transactions with Mastercard. K Wearables manufactures, sells and distributes the physical devices. Following each purchase there is an activation step, where the token on a particular device can be linked to the Moorwand issued virtual card by K Wearables. The use of K Wearables devices is not exclusive to Moorwand and devices can be linked to other payment service provider accounts, as advertised on the mykring.com website. As such, Moorwand is not involved with the sale of devices and does not receive or hold records of the funds that may have been received for orders of individual devices, so any refund requests should be directed to K Wearables. Please refer to the K Wearables Purchase Policy for details on device returns and order cancellations - https://mykring.com/en/legal/purchase-policies/. K Wearables has recently made a public commitment to offer a refund for customers that have purchased devices but not received them. Please contact K Wearables about this refund.
Funds that are available as a balance on the account can be used anywhere Mastercard is accepted.
Fees are applied in line with applicable Terms and Conditions - https://mykring.com/en/legal/terms-and-conditions Annual maintenance fees are charged in arrears and cannot be refunded.
Wearable devices will continue to work during the two-month notice period provided. Following this, transactions will not be possible on the product. It is recommended that no further loads are made to the account and that the balance is spent down to zero ahead of the closure date of 30th September 2022.
The K Ring service will closed from 30th September 2022, the ring and the virtual cards associated with accounts will be deactivated. Moorwand will not be supporting the provision of payment accounts following the 30th September 2022.
Any funds transferred by bank transfer to K Wearables Limited should have been credited to your balance immediately and sent to Moorwand for safeguarding. Moorwand has become aware of a number of customers stating the funds they transferred to K Wearables have been delayed in reaching their K Ring account. Moorwand strongly advises users to not load their accounts any further. Customers may attempt to contact K Weareables and inform them that a payment is missing.K Wearables has recently made a public commitment to make sure that funds that were transferred but not credited to accounts will be transferred back to you. Please contact K Wearables about this refund. Moorwand does not hold the account that these funds were sent to. You may wish to contact your bank and ask if they can recall the funds from K Wearables bank or raise a dispute on your behalf.
Moorwand is authorised by the Financial Conduct Authority (FCA) to provide payment services and issue electronic money. As a regulated payment service provider Moorwand has a regulatory obligation to ensure the products and services it provides do not harm customers. Moorwand takes its obligations to treat customers fairly very seriously, and in order to ensure this is adhered to Moorwand has taken control of customer communications to ensure the closure of the product is managed properly and fairly, in line with both regulatory requirements and to minimise customer detriment.
Moorwand is authorised by the Financial Conduct Authority (FCA) to provide payment services and issue electronic money. As a regulated payment service provider Moorwand has a regulatory obligation to ensure the products and services it provides do not harm customers. The K Ring ring and virtual account offering will be closed as of 30th September 2022.
Moorwand is authorised by the Financial Conduct Authority (FCA) to provide payment services and issue electronic money. As a regulated payment service provider Moorwand has a regulatory obligation to ensure the products and services it provides do not harm customers. Moorwand will support the K Wearables product for the remainder of the two month notice period but will not be doing so beyond that time.
Moorwand is authorised by the Financial Conduct Authority (FCA) to provide payment services and issue electronic money. As a regulated payment service provider Moorwand has a regulatory obligation to ensure the products and services it provides do not harm customers. Moorwand will support the K Wearables product during the closure period.
Moorwand is authorised by the Financial Conduct Authority (FCA) to provide payment services and issue electronic money. As a regulated payment service provider Moorwand has a regulatory obligation to ensure the products and services it provides do not harm customers. Moorwand would urge any potential customers to not purchase any devices from K Wearables and any ongoing activity does not have Moorwand consent. K Wearables may continue operate in the future by working with other regulated payment services providers.
Fees are applied in line with applicable Terms and Conditions - https://mykring.com/en/legal/terms-and-conditions These terms and conditions continue to apply during the notice period and upon closure. Maintenance fees reflect the costs of supporting the account and holding funds, particularly when a product is not in use for a prolonged period of time. Following closure, you will not be charged a fee for redeeming any remaining e-money balance on your account for 12 months.
Moorwand will refund the balance shown on your K Wearables account upon your request, to a UK account in your name. You will need to provide details of the account you would like funds sent to, emailing firstname.lastname@example.org:- name on the account - account number, and - sort codeContrary to what has been stated in communication from K Wearables, there is no cut-off to request a return of your funds upon termination at the end of September. A simple request to return funds will not be considered as a complaint but processed as a request for the redemption of e-money. K Wearables Terms and Conditions set out your rights to redemption of funds and state that a redemption fee of five pounds (£5) applies where a request for a redemption is made before termination. Moorwand has provided customers with two months notice that K Wearables accounts will terminate on 29th September 2022. Following termination, no redemption fees will be charged for 12 months. Customers may redeem the e-money on their account for up to six years after the date of termination. This process is in line with Part 5 of the Electronic Money Regulations 2011. As a regulated Electronic Money Institution, Moorwand issues electronic money for the funds it receives and safeguards these funds in accordance with the Payment Services Regulations 2017 and the Electronic Money Regulations 2011, and in accordance with guidance from the FCA. This means we keep the money we receive and that we show as your K Wearables balance in a separate customer bank account, this is completely separate from any Moorwand or K Wearables accounts.This means that if Moorwand or K Wearable was to go out of business, your funds would not be used to cover any debts the business might owe. In this event, whilst there may be some costs applied by administrators, you should get most of your money back. You can find more information about this on the FCA website - https://www.fca.org.uk/consumers/using-payment-service-providers.