In response, Chocolate Finance decided to pull the plug on AXS’ involvement at the start of March – less than a month after its debit card was launched.
But it did so without first informing customers.
“Giving notice would have just exacerbated the utilisation so much more,” said Mr de Oude.
“In hindsight, we probably should have given a bit more time and advice and spoken it through with our customers more.”
Instead, the company updated its Frequently Asked Questions page online, but the initial phrasing implied it was AXS which initiated removal of the card.
“Within hours”, this was edited to reflect that Chocolate Finance had requested it, but the damage was done, said Mr de Oude.
Some customers – among hundreds angrily commenting online – felt the company was not upfront about its actions.
“We weren’t as clear as we should have been. That’s on us, as an organisation, (and) for us to deal with as we move forward to the next chapter of our business,” Mr de Oude told CNA.
He did not directly answer CNA’s questions on whether the company has looked into what caused the communication error, and whether those responsible would be penalised.
In an earlier LinkedIn post, Mr de Oude acknowledged that customers were frustrated by the sudden move, and that it led to negative reviews, increased withdrawals and overall negative sentiment toward the company.
BUSINESS AS USUAL TO RESUME: CEO
Mr de Oude reiterated in the interview that it was normal and aligned with industry standards for withdrawals to take a few days, when it comes to fund management models such as Chocolate Finance’s.
“What’s absolutely clear here is that all of our customers’ monies is safe, it’s all invested in the way it’s supposed to be, and it will all be withdrawn or redeemed in the ordinary course of business,” he said.
