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Bench is charging people for services they already paid for, some customers say
Customers of accounting startup Bench, acquired by Employer.com, claim they are being charged for pre-paid services, contradicting CEO Jesse Tinsley's promise to honor such payments. A lawsuit alleges misrepresentation by the new ownership, as clients report needing to renew subscriptions for services already paid for. Employer.com disputes these claims, asserting that they are honoring past payments.
Key points
- Bench, an accounting startup, was acquired by Employer.com after declaring bankruptcy.
- CEO Jesse Tinsley promised to honor unpaid customer services but customers report being charged again.
- A lawsuit claims negligent misrepresentations about honoring past payments.
- Specific customer accounts detail being asked to pay for services they already purchased.
- Employer.com's CMO denies charges for past services, though customers dispute this claim.
- Bench previously struggled with liquidity and operational issues leading up to its acquisition.
Why it matters
- This issue reflects broader trends in customer service practices post-acquisition.
- The reliance on AI by Bench and similar fintech companies underscores challenges in replacing human labor.
- Bench's collapse and subsequent acquisition could influence investor confidence in tech startups.
The controversy surrounding Bench highlights the critical importance of transparency and accountability in service transitions, especially following an acquisition.