INDIANAPOLIS, Ind. — An Indianapolis woman says her hard earned money just vanished.
Dana Franklin tells FOX59 her paycheck from August 30th was deposited, then it was taken back.
FOX59’s Beairshelle Edmé dug deeper into this and found out why thousands of people are out of a paycheck too.
In two days, Franklin says she lost her paycheck twice when it was ordered to be reversed.
“It’s been very challenging,” she said. “You just hope that it gets resolved as soon as possible.”
Franklin works in Indianapolis as an IntellaPRO contract employee for Franciscan Health. IntellaPRO uses MyPayroll HR to issue checks.
“A little over a thousand dollars,” is how much Franklin says is gone.
Several reports and companies say MyPayroll HR shut down suddenly last week. It operated payroll for hundreds of companies, and thousands of those employees nationwide say their paychecks are gone.
“My rent did not go through my bank before the reversals were made,” Franklin explained when talking about the impact this has had on her.
“It was a dagger, a dagger going through our hearts because now these people are taking more money from all of our employees, and we don’t know why. There’s no explanation,” said Brad Mete, the president and co-founder of IntellaPRO.
Cachet Financial Services was a third party vendor for MyPayroll HR. It completed direct deposits for the company’s client employers.
Cachet claims MyPayroll HR, like usual, instructed them to take money from employer accounts to complete those direct deposits.
“The money they took from employers could not be accessed. Pioneer (Bank) froze that account,” said Wendy Slavkin, the attorney for Cachet. “They took $26 million out of our account. So in a sense, they used our money because there was no money in that settlement account. They used our money to fund the payroll for these various companies.”
Slavkin tells FOX59 that Cachet made a fraud claim and asked dozens of banks to reverse the payments, which were issued from their accounts. That is how thousands of employees saw their paychecks vanish.
The company said on Monday it told more than 100 banks to reject its reversal requests and return the money to employees, people like Franklin.
“It’s not a very secure feeling knowing this could have happened, and it should have never happened,” Franklin said.
FOX59 did call and email MyPayroll HR but did not hear back.
Franklin said IntellaPRO promised that all her money will be back by Wednesday. Franciscan Health added in a statement that, “Franciscan employees are not impacted by any payroll issues… IntellaPro is processing the affected employee’s payroll today, and the employee will be paid in full.”
In the meantime, if you or someone you know was impacted, Cachet recommends calling your bank immediately to get your paycheck back.