Customers Outraged: Bench Charges for Already Paid Services!
In a surprising turn of events, the recent acquisition of the bankrupt accounting startup Bench by Employer.com has raised significant concerns among its former customers. Many are claiming that despite assurances from CEO Jesse Tinsley regarding the honoring of prepaid services, they are facing unexpected charges for tax returns and accounting services they had already paid for. This situation has led to a growing controversy surrounding the management practices of the new ownership.
Background of the Acquisition
Last year, Employer.com purchased Bench, a company that had previously struggled financially, for a mere $9 million. This acquisition came shortly after Bench declared bankruptcy, leaving numerous customers in limbo.
- Debt Issues: Bench burned through $135 million under previous ownership.
- Failed Innovations: The company attempted to replace human bookkeepers with AI but faced significant challenges.
- Credit Withdrawal: The National Bank of Canada withdrew an additional $7.7 million in funding shortly before Bench’s collapse.
Promises Made by CEO Jesse Tinsley
In various statements, CEO Jesse Tinsley emphasized his commitment to honoring all prepaid services. He reassured customers through platforms like LinkedIn that they would not lose their payments made under the former management.
Customer Complaints and Lawsuit
Despite these promises, many customers are reporting difficulties. A recent lawsuit filed by Bench customer Qorum alleges:
- They were required to pay for their 2023 tax return even though it had been prepaid.
- Statements made by Tinsley about honoring services were misleading.
Another anonymous customer expressed frustration after learning they needed to renew their subscription to access accounting books that were already paid for two years ago. A representative from Bench claimed that the new entity, dubbed “Bench 2.0,” had no obligation to honor past commitments.
Employer.com’s Response
Matt Charney, CMO of Employer.com, has strongly denied these allegations, stating:
- “We are honoring prepaid services for our customers.”
- Tax returns are being delivered without additional charges.
However, Qorum’s founder, Andrew Pietra, contends that he was still required to maintain his subscription to receive his tax return, contradicting Charney’s claims.
The Fallout from Bench’s Closure
When Bench abruptly shut down on December 26, many customers found their financial records and tax returns incomplete. This left a significant number of businesses in a precarious position, as the necessary documentation for tax purposes remained unaddressed.
In addition, former customers reported receiving notices that pressured them into waiving their rights to refunds on prepaid services, raising further ethical concerns about the current management’s practices.
Conclusion
The situation surrounding Employer.com’s acquisition of Bench highlights the complexities and challenges faced by businesses in transition, especially when customer trust is at stake. For more updates and information on this evolving situation, visit TechCrunch or explore our internal articles on business strategies and financial management.
