Payroll company abruptly closes, leaving thousands without paychecks

FARMINGTON HILLS (WJRT) (09/09/19) - The abrupt closure of a company that processes payroll for thousands of employees at other businesses is leaving people looking for the money they earned.

One of them is Amanda Anderson, who has had several sleepless nights over the past week. With none of the pay she earned getting to her bank account, she is struggling to hide her worry from her daughter.

"She's 11. She looks at me and says to me, 'Mom are you going to be OK?' That was hard, panicking a little on the inside while saying of course everything is fine," Anderson said.

The nightmare began for the single mom of two last Thursday, when she opened up her bank account to find she the paycheck she had received the previous week had been removed from her account.

Anderson immediately reached out to her employer and soon learned the problem was more than a glitch. MyPayrollHR, the company that provided payroll for her employer, had suddenly closed.

"The employees for HR showed up to work to a closed office and from understanding, received an email that said, 'Hey our doors are shut, you don't have a job.' From there the accounts that they were paying from were all frozen," Anderson said.

That's when Anderson found out her paycheck had been reversed twice by a third-party bank she didn't recognize -- Cachet Financial Services.

"They then turned around and essentially repossessed the funds they had already paid out," Anderson said.

That left Anderson with a negative balance of $800. Thousands of other employees across the country found negative bank accounts as well.

"They basically tell you, well it was our money, we just took it back, sorry, you are going to have to do what you have to do, not our problem," Anderson said.



 
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