The FCA has reported that in recent months there has been an alarming rate of UK residents who have been persuaded into joining a UK-based venture known as WeRe Bank. In order to join WeRe Bank members are required to issue a Promissory Note in the sum of £150,000 which is payable within ten year anniversary from the time of joining.
The FCA has received numerous reports from financial institutions, councils, utility companies and other businesses that have been presented with WeRe cheques by consumers attempting to pay their debts. The FCA has commented that none of these institutions has accepted the WeRe cheques as legitimate payment. It has gone on to say that although WeRe Bank refers to itself as a bank, it does not appear to be carrying on any activities that would require it to be authorised by the FCA and users would not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme.
It has been highlighted that by using the WeRe cheques and failing to get them accepted, an individual may incur additional charges from their creditors due to late payment.
Click here for further information on the FCA website.