RadPad Rent Checks Bouncing – Beginning of the End? | Hacker News Reader

RadPad Rent Checks Bouncing – Beginning of the End?

medium.com

20 pointspauljaworski16 comments

Presumably RadPad owes this user their rent money since they didn't pay it. If the company goes into bankruptcy, what's the "seniority" of this type of debt?

It seems like if enough people are affected by this it might be a very nasty class action lawsuit for RadPad.

Anyone who is using RadPad would become a creditor, but if there's no money and no assets left, they're SOL.

EDIT: This is not to say RadPad is having financial issues, just a "what if" scenario.

That's my fear and why I will never again pay my rent through them. If they go under, I'm out $1350.

This article has apparently been deleted:

"410 Error: The author deleted this Medium story"

Link to Google cache:

https://webcache.googleusercontent.com/search?q=cache:gkIJNj...

Medium somehow mangles this page, can't get article on mobile

Hey - I'm one of the co-founders.

If you reach out to us at feedback@onradpad.com we can overnight a new check if necessary right away. We've only had 2 other reports so far of checks not going through.

You can also message me on twitter @tylergalpin

Hey Tyler! Is RadPad having liquidity/financial difficulties? Or is this a technical hiccup?

Technical hiccup with one of our APIs. Super annoying, I know.

Funds from renters we charge for rent payments are paid out from a special account only for rent payments, so we don't use that money at all. We do not dip into those funds whatsoever, under any circumstances.

Why would a new check make any difference? Why isn't there money in the account?

EDIT: You also claimed that this issue was resolved 8 days ago, and that the cause was simply due to a transfer from your processor going into the wrong account. If that was true, my landlord would not have had any issue depositing the check today. It seems way more likely that this is a cashflow issue and you are in fact dipping into the rent account to cover other bills

The money is in the account. There's an API error. If you could send us your account email to feedback@onradpad.com we can help your landlord get their money ASAP.

I did email you guys, but I'm having trouble understanding this "API error" explanation. What API error? How is an API error affecting whether a check clears or not. I can understand an "API error" resulting in the funds being sent to the wrong account as you explained on Reddit 8 days ago, but not preventing a check from clearing if the funds are in the proper account as you say.

Please help me understand. Right now I'm very hesitant to ever use your service again.

said reddit thread, I assume: https://www.reddit.com/r/churning/comments/50q9zd/radpad_che...

(for context & to save other readers time searching for it)

What's the benefit of paying via RadPad? It seems to be increasing the number of middle men (1. Credit card agency, 2. RadPad), and middleman's commission is often not commensurate to the service provided.

If the land-lord only likes paper checks and you want to use your credit-card (and maybe get points). RadPad seems to only collect the credit-card fees on top.

Also depending on the Credit Card used, the amount of credit card points or cash back rewards gained may exceed any fees from RadPad.

Mentioned in the article, PayPal Business Debit MasterCard is a debit card connected to your PayPal account that earns 1% cashback. Until a few weeks ago it was free to pay with a debit card using RadPad. That's free money.

If you were having an emergency putting rent on your credit card could be a short term solution that makes sense. Its better than a payday loan and intro zero percent into APR card could mean you'll only pay 3% in credit card fees. Of course, this is super risky but its good to have that available.

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