IKobo Summary
I used iKobo for several years to send money to support a child in Vietnam. On October 11, iKobo blocked the card recipient's use of the card, even though $1,206.59 in credit remained on it. I asked iKobo to check on it. On October 12, iKobo replied: "your recipient has had several declined transaction [sic] due to the fact that he/she has exceeded the daily withdrawal limit allowed covering a transaction... Please confirm that your recipient has the card in his/her possession. If he/she is in possession of the card he/she must stop attempting to use the card immediately until the passage of 24 hours."
I asked the recipient to wait at least 24 hours before attempting to use the card again, and I confirmed this to iKobo, which responded: "Please be advised that the status of your recipient's account has been changedback to active. Kindly advise her to observe the daily withdrawal limitavailable in the future."
After the passage of some months, I learned that the recipient had never been able to use the card again, and iKobo was now advising her that the card had expired and needed to be re-newed with the purchase of a new card.
This irked me a bit, because a new card was only necessary because iKobo had never allowed the recipient to use the balance of the now-expired card.
I asked iKobo to advise what we needed to do to be able to allow the recipient to use the balance on the card. On April 30, iKobo responded, in an email with the subject line "Possible Fraudulent Activity": "In regards to your correspondence in which you advised that you had lost/misplaced your card. Please note that we would require that you confirm the following:
-First name and Last name of the account-Date of birth-The Date the card was last in your possession-Confirmation that you accept the reissuance fee of $15.00USD - $50.00USD (the cost depends on your location).-Confirmation of your mailing address to ensure it is what we have on file."
IKobo also advised that in the event that I had recently moved, to show a copy of a utility bill or bank statement from my previous and new addresses.
I wrote back the same day to say the card was not lost or misplaced. The recipient says it expired. Should she use the same directions? IKobo wrote back with nearly identical instructions that added that it would send a new card either via first class, which would require four weeks but would be free, or by Fedex, which would require five-seven business days and costup to $14.35. I provided all of the requested information in early November and opted for first class mail, paying a fee of $2.99 for the new card.
In early December, the recipient noted that she had not yet received the replacement card. I had hoped the recipient would receive the card in time fornChristmas. I checked with iKobo, which wrote that it had sent a replacement card on November 10. On December 21, I asked iKobo to explain why the card still had not arrived. On Christmas Eve, iKobo responded: "we have checked with our shipment team and they have confirmed that we have not received any card back for your recipient in the mail. Therefore, we must consider this card lost/misplaced in the mail and hence would suggest you have a new card sent. To ensure delivery, we would recommend that you have the new card sent via Fedex..."
On December 29, I agreed for iKobo to Fedex the card to Vietnam at an additional cost of $14.35. IKobo confirmed the card request. On January 11, and again January 17, I informed iKobo that the card never arrived. On January 19, iKobo replied: "please note that presently we are experiencing issues with issuing replacement cards for our customers as any card issued within this time frame will still have the expiration date of February. We are presently working with the issuing bank to resolve this matter so that we can have your card issued and sent to you as soon as possible. We anticipate this matter will be resolved as soon as possible. Once we have confirmation that the recipients card has been shipped and sent, they will be contacted via email."
By March 2, my patience was at an end. I wrote: "I ask that you issue the card to [the recipient] without further delay. I also ask that in view of the months that have passed since we requested and paid for expedited treatment — and the many more months you have withheld her money without issuing a card — you refund or credit all card issuance fees we have paid."
The next day, iKobo responded: "Please note that your email has been escalated to the Compliance team to have your request for a new card to be canceled and to investigate if reversal of the funds remaining on your recipients account can be performed since your last load to the card was since 2009.
"No new card stock has been received and therefore all Ikobo customers are awaiting the replacement cards to be sent. Customer will be advised as soon as new cards are received and shipped out but as you have requested a cancelation of this and the funds returned, you will be contacted with further information once the Compliance team review your request."
I immediately fired back: "Please re-read my email. I asked that you refund or credit all card issuance fees we have paid. I did not ask for the reversal or return of all funds remaining on the recipient's account. Nor did I request that the new card be cancelled — quite the contrary, I requested that a new card be issued without further delay.
"Also, I would just like to note for the record that the reason the last load to the card was in 2009 is because you have not allowed the recipient to receive her money ever since that time. Why would I load new money on a card that still has such a large balance?
"Reviewing the record since October in light of this latest response, I'm frankly beginning to doubt iKobo's good faith in its dealings with the recipient and me. I earnestly hope you will act to dispel such doubts."
Having researched iKobo and read that the company is based off-shore in Antigua, I also copied that government's legal and consumer affairs departments.
On March 4, iKobo apologized for the delay and said the matter was under review by management. On March 8, I asked iKobo if the matter was still under review and bitterly noted that the recipient had not been able to use her money for over a year and that iKobo had enjoyed the free use of this money ever since. IKobo had charged me extra money to pay for services and fees it never honored, and was still temporizing and preventing the recipient from being able to withdraw the money I had sent. I again pressed for the issuance of a valid card and the refund of all of the card issuance and other fees iKobo charged but had never honored. I copied the Government of Antigua.
On March 10, iKobo wrote: "Please note that IKOBO has not enabled the transfer option and presently await the new shipment of cards which will expire as of 2012. We appreciate and empathize with ALL patrons as All patrons are presently affected by the delay which has been caused by the card issuance company.
"Your request for the card fee to be wavered has been forwarded to the relevant team for review. Once customer support receives a response, you will be contacted and advised accordingly.
"Unfortunately the card issuance delay was not an issue which was within IKOBOs control.in the event the management team are willing to wave the fee, you will be advised. However, as ALL patrons are affected by this delay and this is not an isolated case... We cannot confirm that the fee will or will not be wavered."
In May, I wrote again to iKobo, noting that more months had passed without iKobo making any attempt at redress. I asked iKobo in what jurisdiction was it licensed to do business.instead of giving a substantive response, iKobo only replied again that the matter had been escalated to the relevant department for review and that I would be contacted shortly. I responded: "It's a simple question.in what jurisdiction are you licensed to do business?". When another week passed without a response, I informed iKobo that its unwillingness to answer no answer was prima facie evidence that it was acting in bad faith. I demanded immediate redress and added that I was moving to take legal action, again copying the Government of Antigua.
On June 3, iKobo finally responded, only writing: "We are in receipt of your recent e-mail in which you have highlighted your dissatisfaction with the delay in resolving the matter detailed below. Please accept our most sincere apologies in this regard. We would like to assure you that we are indeed doing all that we can in order to bring this matter to an end and will confirm that this issue us currently under investigation with the relevant department."
In researching the matter further, I learned that iKobo had a business address in the State of Georgia. I solicited the help of attorneys based in Georgia but received no response.
I contacted iKobo again in September to demand my money. Since all of the pertinent emails were on a single email string, the matter was easy for anyone to track from the beginning. On September 7, iKobo flabbergasted me with the following response: "Further to your recent inquiry, please be advised that this customer support centre has no information regarding your outstanding refund. Please contact Ikobo Ownership directly using the following details: Tel: 407.551.1300 Ext 1304Fax: 407.551.1399E-mail: clientservices@m2-financial. ComM2 Corporation2301 Maitland Center ParkwaySuite 240Maitland, Florida 32751We trust that you will find this information useful and sincerely apologise for any inconvenience."
I replied immediately: "How can you possibly claim after two years that you have no information regarding my refund — especially when the email string is self-explanatory?"
IKobo responded: "Please note that you have contacted the Call Centre hired by the Ikobo management team to assist their customers, however they have no provided this team with any further information regarding refunds, which is why we have provided you with their direct contact information for further assistance and information. They will be capable of advising you further. Please contact them via phone, email or post at your convenience."
That same day I emailed [email protected] and copied the usual iKobo email addresses. I wrote: "For the purpose of maintaining a written record, I am writing rather than calling you to find out what iKobo intends to do about returning the money it owes me.
"The email chain below is quite explanatory. I want all of my monies refunded to me without further delay."
IKobo and M2 never sent me a response.
Today I have filed a claim with the Georgia Governor's Office of Consumer Protection. Next will be its counterpart office in the State of Florida.
I will bring this to court if necessary, and if I do so, I will seek exemplary damages. I'd be interested to know whether anyone else had a similar experience with iKobo, to explore the feasibility of a class action suit.
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