Group Stash Terms and Conditions

These terms and conditions govern your participation in the Pesa group stash feature, a digital tool that supports rotating and group stash. Pesa provides the technology, payment processing and record-keeping that allow you and the other members of your group to operate a group stash. Pesa is not itself a member of, party to, guarantor of, manager of, or fiduciary for any stash. The stash arrangement is a private contract among the members of each group. Read these terms carefully before joining or creating a group. By using the group stash feature you confirm that you have read, understood and agreed to these terms.

Pesa group stash is not a deposit-taking, investment, lending, insurance or collective investment scheme service. Funds contributed under a group stash are not protected by the financial services compensation scheme. The default of a fellow member is a risk you accept by joining a group.

1. Who we are

PESAPEER PAYMENTS LIMITED ("Pesa", "Pesapeer", "we", "us" or "our") is a company incorporated under the laws of the United Kingdom (company number 11869717) with its registered office at Milton Hall, Ely Road, Milton, Cambridge, England, CB24 6WZ. Pesa is authorised and regulated by the Financial Conduct Authority ("FCA") as an Electronic Money Institution under Firm Reference Number (FRN) 931425.

Pesa’s authorisation covers the issuance of electronic money and the provision of related payment services. It does not cover, and these terms do not create, any deposit, investment, lending, insurance, advisory or fiduciary service.

2. Definitions

In these terms, the following words have the following meanings:

"Account" means the electronic money account you hold with Pesa under our UK Terms of Use.

"Contribution" means the periodic amount that a member is required to contribute into the group pool under the group rules.

"Cycle" means a single full rotation of the group, beginning on the start date specified in the group rules and ending when each member has received one payout, or when the group is otherwise terminated.

"Default" means any failure by a member to pay a contribution in full and on time, or any other material breach of the group rules by that member.

"Group" means a rotating stash and credit association formed among members using this feature.

"Group Contract" means the legally binding agreement between the members of a group, comprising the group rules, these terms (to the extent applicable to members) and any other terms agreed among the members.

"Group Organiser" means the member who creates a group and invites other members to join, and who has the additional responsibilities set out in clause 6.

"Group Pool" means the aggregate of contributions held in a designated sub-balance of the group organiser’s or Pesa-administered safeguarded e-money balance solely for the purpose of executing scheduled payouts under that group.

"Group Rules" means the parameters of a particular group as configured in the application, including without limitation: number of members, contribution amount and frequency, cycle length, payout order, start and end dates, fee allocation and any agreed penalty for default.

"Member" means a person who has been admitted to a group and who has accepted these terms.

"Payout" means the disbursement of the group pool (less any applicable fees) to a member on that member’s scheduled turn under the group rules.

"Payout Recipient" means the member entitled to receive a payout on a particular date.

"Platform" means the Pesa application, website and related services through which the group stash feature is made available.

"Services" means the technology, payment-processing and record-keeping services provided by Pesa under these terms.

3. Nature of the service and Pesa’s role

3.1 Pesa is a facilitator and record-keeper, not a party to the group contract

The group stash feature is a self-service tool. Pesa provides the platform, executes scheduled debits and credits to members’ account in accordance with the group rules, and maintains a contemporaneous record of contributions and payouts. Pesa is not a member of any group, is not a party to the group contract, and does not negotiate, endorse, advise on, underwrite, guarantee or insure any group, group rule, contribution or payout.

3.2 No deposit, escrow, fiduciary, investment, lending or insurance relationship

No deposit-taking, escrow, fiduciary, trust, investment management, lending, credit, brokerage, insurance or collective investment scheme relationship arises between Pesa and any member as a result of the services. Pesa does not advance funds to any member and does not pay any payout out of its own resources. A payout is funded exclusively by the contributions actually received from members for that cycle.

3.3 Safeguarding of e-money

Funds you load into your account are electronic money safeguarded in accordance with the Electronic Money Regulations 2011. Safeguarding protects the e-money balance held in your account from Pesa’s creditors in the unlikely event of Pesa’s insolvency. Safeguarding does not protect you from the risk that another member fails to pay a contribution, that a group is terminated before you have received a payout, or that a payout is reduced because of defaults by other members. Funds in the group pool, while passing through Pesa’s systems, do not constitute a deposit, an investment or a fiduciary holding.

3.4 No advice

Nothing in the platform, in marketing materials, in any in-app prompt, or in any communication from Pesa staff constitutes financial, legal, tax, investment or other professional advice. Members are responsible for their own decisions to join, create or remain in any group.

3.5 No FSCS protection

Although Pesa is authorised by the FCA as an Electronic Money Institution, neither your account nor any group pool is protected by the Financial Services Compensation Scheme. Members rely solely on the safeguarding regime described in clause 3.3 and on the contractual obligations of the other members.

4. Eligibility

To use the group stash feature you must:

• Be at least 18 years of age;
• Hold an active Pesa account in good standing;
• Have completed all customer-due-diligence and identity-verification requirements applied by Pesa under applicable anti-money-laundering, counter-terrorist-financing and sanctions laws;
• Not be subject to any sanctions, restrictions or prohibitions that would make your participation unlawful for you or for any other member; and
• Agree to these terms, our UK terms of use, our privacy policy and the group rules of each group you join.

Pesa may at any time and in its sole discretion refuse to allow a person to create or join a group, or to remain in a group, including for reasons relating to identity verification, sanctions screening, fraud prevention, regulatory obligations or risk management. Pesa’s decision to admit or exclude a person from the platform does not constitute an endorsement, vetting or warranty of that person’s creditworthiness, character or willingness to pay contributions.

5. Forming and joining a group

5.1 Group creation

Any eligible member may create a group by completing the group-creation flow in the platform and inviting other members. The group is formed when the minimum number of members configured in the group rules have accepted their invitations and confirmed agreement to the group rules within the application. The group rules, once locked, are binding on all members and constitute the core of the group contract.

5.2 Member selection is the responsibility of Members

It is the responsibility of the group organiser and of each member to select co-members in whom they have personal trust. Pesa does not assess, guarantee or comment on the trustworthiness, financial standing, intentions or future conduct of any member. Pesa’s identity-verification checks are conducted for Pesa’s own regulatory and risk-management purposes only and are not, and must not be relied upon as, a credit reference, character reference, suitability check, due-diligence service or recommendation for the benefit of any other member. Pesa does not conduct affordability assessments, creditworthiness assessments, background investigations, employment verification or financial suitability reviews of members for the benefit of any group or member.

5.3 Binding effect

By accepting a group invitation you

(i) enter into the group contract with the other members,
(ii) confirm that you have read and understood the group rules, and
(iii) authorise Pesa to debit your account and credit other members’ accounts in accordance with the group rules. The group contract is a private agreement among members and is enforceable solely as between members. Pesa is not a guarantor of, surety for, or party to that contract.

6. The Group Organiser

6.1 Role

The group organiser is a member who has elected to perform the additional administrative duties set out in this clause. The group organiser is not an employee, agent, partner, joint venturer or representative of Pesa. The group organiser does not act for or on behalf of Pesa and has no authority to bind Pesa in any way.

6.2 Responsibilities of the group organiser

The group organiser is responsible, in addition to their obligations as a member, for:
• selecting and inviting prospective members;
• configuring the group rules;
• communicating with co-members about the operation of the group;
• dealing, on behalf of the group, with any default by a member, including any decision to expel a defaulting member or to seek replacement of that member; and
• any other administrative function expressly delegated to the group organiser by the members.

6.3 No additional liability of Pesa

Any act or omission of the group organiser is the act or omission of a member, not of Pesa. Pesa accepts no liability for the conduct of the group organiser, the configuration of any group rule, or any decision taken by the group organiser concerning the management of the group.

7. Contributions

7.1 Authorisation to debit

By joining a group, each member authorises Pesa to debit their account, on each scheduled date specified in the group rules, by the amount of the contribution due on that date, plus any applicable fee. The authorisation may be withdrawn only by the member’s exit from the group in accordance with clause 13.

7.2 Failure of debit

If, on a scheduled date, the available balance in a member’s account is insufficient to fund the contribution, the contribution will not be processed, the member will be in default, and clause 10 will apply. Pesa will not advance the shortfall, will not extend credit, and is under no obligation to retry the debit.

7.3 Reversal and chargeback

Once a contribution has been collected by Pesa, the underlying funding instruction is final. Members may not reverse, charge back or otherwise recall a contribution save in the limited circumstances expressly contemplated by these terms or by the Payment Services Regulations 2017. Wrongful chargeback claims are recoverable from the member under clause 17.

8. Payouts

8.1 Order and amount

Payouts are made strictly in accordance with the group rules. The amount of any payout is equal to the aggregate of contributions actually collected from members for the relevant payout date, less any applicable Pesa fee. If, due to one or more defaults, the contributions actually collected fall short of the scheduled payout amount, the payout will be reduced pro rata or postponed in accordance with the group rules. Pesa is not obliged, in any circumstances, to top up a payout from its own funds.

8.2 Timing

Pesa will use reasonable endeavours to credit a payout to the payout recipient’s account on the scheduled date, but does not guarantee any specific time of credit. Delays may occur for reasons beyond Pesa’s reasonable control, including matters specified in clause 18 (Force majeure).

8.3 No interest

No interest, return, profit, dividend or yield of any kind accrues to members in respect of contributions, the group pool or any payout. The group stash feature is a rotational or targeted stash tool, not an investment.

9. Risk acknowledgements

Each member expressly acknowledges and accepts the following risks. These acknowledgements are material and are a condition of participation:
1. Member-default risk: A co-member may fail to pay one or more contributions, with the consequence that the member’s scheduled payout is reduced or postponed. Pesa does not guarantee, insure or underwrite the performance of any member.
2. Sequence risk: Members who receive their payout earlier in a cycle effectively receive an interest-free advance from those members who receive their payout later. The later members bear a higher exposure to the cumulative risk of defaults across the cycle.
3. No FSCS or equivalent compensation: Group pool funds and contractual claims among members are not protected by the Financial Services Compensation Scheme or any equivalent statutory compensation scheme.
4. Limited recovery: Pesa does not pursue defaulting members on behalf of any group or member and is under no obligation to investigate, mediate, arbitrate or litigate any dispute between members or to assist with debt collection.
5. No regulated investment protections: the protections that apply to regulated deposits, investments and collective investment schemes do not apply to group stash.
6. Tax: Members are solely responsible for determining and discharging any tax liability arising from their participation.

10. Default by a Member

10.1 Default consequences — between Members

On a default, the group rules govern the consequences as among the members, including any reduction or postponement of payouts, replacement of the defaulting member, and recovery of arrears. Recovery is a matter for the affected members. The non-defaulting members’ right of recovery against the defaulting member is preserved, but is exercisable only by those members and not by Pesa. Pesa does not guarantee that any defaulting member can be located, contacted, identified, served with legal process, or compelled to repay contributions.

10.2 Pesa’s rights on Default

On a default, Pesa may, at its sole discretion and without notice, do any one or more of the following:
• suspend the affected group, in whole or in part, while the situation is assessed;
• suspend the defaulting member’s access to the platform or to the group stash feature;
• provide the non-defaulting members with the contemporaneous transaction records reasonably necessary to enable them to pursue the defaulting member through ordinary legal channels;
• cancel future scheduled debits or credits associated with the defaulting member; and
• terminate the defaulting member’s participation in the group with immediate effect.

10.3 No collection agency

Pesa does not act as a collection agent for any member or group. Pesa’s remedies on default are exercisable for Pesa’s benefit, not for the benefit of other members. Pesa’s decision (or refusal) to exercise any of those remedies does not give rise to any liability of Pesa to any member or to any third party.

11. Anti-money laundering, sanctions and lawful use

You must not use the group stash feature in connection with any unlawful activity, including without limitation money laundering, terrorist financing, fraud, tax evasion, evasion of sanctions, or any activity prohibited by applicable law. You must not use group stash as a vehicle for transferring funds to or from a third party who is not a member, or for any purpose that is not consistent with a bona fide rotating stash arrangement among the members of the group.

Pesa may, at any time and without notice, freeze, suspend, reverse or refuse to process any transaction, debit or credit; close any group; or terminate any member’s access, in each case where Pesa reasonably suspects that doing so is necessary or appropriate to comply with applicable law, regulation, court order, the requirements of any regulator or law enforcement authority, the rules of any payment scheme, or Pesa’s internal financial-crime, sanctions or risk policies. Where the law permits, Pesa will inform you of the action taken; in many cases the law will not permit Pesa to do so.

Pesa may impose transaction limits, contribution limits, group-size limits, payout limits, enhanced due diligence requirements, source-of-funds reviews, or other controls at any time for risk-management or regulatory purposes.

12. Taxes

Members are solely responsible for any tax, levy or duty associated with their participation, and Pesa makes no representation as to the tax treatment of contributions, payouts or group activity.

13. Exit, expulsion and dissolution

13.1 Voluntary exit

A member may not unilaterally exit a group during a cycle except with the prior written agreement of all other members. The mechanics of an agreed exit (including any settlement of arrears, treatment of contributions already paid, and replacement of the exiting member) are determined by the members, not by Pesa.

13.2 Expulsion

A member may be expelled from a group in accordance with the group rules. Pesa will give effect to a duly recorded decision to expel a member but is not required to verify the substantive merits of that decision and accepts no responsibility for it.

13.3 Pesa-initiated termination of a group

Pesa may, at its sole discretion and without notice, terminate a group or suspend the operation of a group if:
• Pesa reasonably believes the group is being used in connection with unlawful activity, fraud or abuse of the platform;

• The group has materially deviated from the parameters of a bona fide rotating stash arrangement;

• Pesa is required to do so by applicable law, regulation, court order or instruction of a regulator or law-enforcement authority;

• A substantial number of members have defaulted and the continued operation of the group is not viable; or

• Pesa decides, in its sole discretion, to discontinue the group stash feature in whole or in part.

13.4 Effect of termination

On termination of a group, the funds remaining in the group pool will, after deduction of any amounts properly owed, be returned to the members in proportion to the contributions they have made and not yet had the benefit of through a payout. Allocation among members of any net loss arising from prior defaults is governed by the group rules and is a matter among the members. Pesa’s only obligation on termination is to apply this clause 13.4 and to make available the corresponding transaction records. Pesa's determination of the mathematical allocation methodology used to return remaining group pool funds following termination shall be final and binding absent manifest error.

14. Records and statements

Pesa will make available, through the platform, a record of contributions and payouts associated with each group in which you are a member. That record is a record of payments processed by Pesa’s systems and is not a determination of the rights or obligations of any member under the group contract. Members agree that the platform records will be treated as accurate evidence of payment events save in the case of manifest error.

15. Disputes between members

Disputes among members concerning a group, the group rules or the group contract are private matters between those members. Pesa is not a party to any such dispute and is not obliged to mediate, arbitrate, investigate, take sides or take any other action in relation to it. Members must not name Pesa as a respondent or party in any complaint, claim or proceeding arising out of a private dispute between members. Pesa’s only role in any such dispute is to provide, on reasonable request and where lawful to do so, the transaction records reasonably necessary for the members to pursue the matter through ordinary legal channels. To the fullest extent permitted by law, members waive any claim against Pesa arising solely from a dispute, disagreement, claim or controversy between members relating to a group, the group rules or the group contract.

15.1 No Agency Relationship Between Members

No member acts as agent, representative, fiduciary, trustee, partner, joint venturer or legal representative of any other member solely by virtue of participating in a group. Participation in a group does not create any partnership, agency, trust, joint venture or other fiduciary relationship between members unless expressly agreed by those members outside the platform.

15.2 No Responsibility for Group Decisions

Pesa is not responsible for, and shall have no liability arising from, any decision made by members relating to group membership, payout order, replacement of members, expulsion of members, treatment of defaults, allocation of losses, or any other matter governed by the group rules or otherwise agreed among members.

16. Limitation of liability

16.1 What Pesa is responsible for

Pesa’s sole obligations under these terms are

(i) To make the platform reasonably available,

(ii) To process contributions and payouts in accordance with the group rules and the duly authorised payment instructions of members,

(iii) To maintain a contemporaneous record of those processed payments, and

(iv) To comply with the requirements of applicable law and our financial-services authorisations.

16.2 What Pesa is not responsible for

To the fullest extent permitted by law, Pesa is not liable to any member or any third party for any loss, damage, cost or expense (whether direct, indirect, special, incidental, consequential, exemplary or otherwise) arising out of or in connection with:
• The conduct, default, insolvency, fraud, dishonesty or refusal to pay of any member, including without limitation any failure by a member to pay a contribution;

• The configuration, terms, performance, fairness or outcome of any group rule or group contract;

• Any decision, act or omission of a group organiser or other member;

• Any reliance placed by a member on the actions, statements, promises, representations, financial condition, reputation, creditworthiness or conduct of another member;

• Any reduction, postponement or non-payment of a payout caused by defaults of other members or by the operation of the group rules;

• Any dispute between members or between a member and a third party;

• Any tax, regulatory, employment, immigration, family or other consequence to a member of participating in a group;

• Any temporary unavailability of, error in or interruption of the platform, where caused by events beyond Pesa’s reasonable control or by scheduled or emergency maintenance;

• Loss of profit, loss of opportunity, loss of business, loss of goodwill, loss of anticipated stash or any indirect or consequential loss; and

• Any matter that arises from a member’s breach of these terms, including the provision of false or incomplete information.

16.3 Cap on liability

Subject to clause 16.4, Pesa’s aggregate liability to any member arising out of or in connection with the group stash feature, whether in contract, tort (including negligence), under statute or otherwise, in respect of all events occurring in any twelve-month period, is limited to the greater of (a) the total fees actually paid by that member to Pesa for the group stash feature in that twelve-month period and (b) GBP £100.

16.4 Liabilities that cannot be excluded

Nothing in these terms excludes or limits any liability that cannot lawfully be excluded or limited, including liability for death or personal injury caused by negligence, for fraud or fraudulent misrepresentation, or any liability that cannot lawfully be excluded under the Consumer Rights Act 2015, the Payment Services Regulations 2017 or the Electronic Money Regulations 2011. Where Pesa has statutory obligations as a payment service provider in respect of unauthorised or incorrectly executed payment transactions, those obligations apply notwithstanding this clause 16.

17. Indemnity

Each member shall indemnify and keep indemnified Pesa, its affiliates, and their respective directors, officers, employees and agents, on demand, against any and all losses, damages, fines, penalties, claims, demands, actions, proceedings, costs and expenses (including reasonable legal fees) suffered or incurred by any of them as a result of, or in connection with,

(i) That member’s breach of these terms, of the group rules or of applicable law;

(ii) That member’s default or fraudulent conduct;

(iii) Any wrongful chargeback or reversal initiated by that member; or

(iv) Any third-party claim brought against Pesa in connection with that member’s participation in a group.

18. Force majeure

Pesa is not liable for any failure or delay in performing its obligations under these terms, or for any consequent loss, where the failure or delay is caused by an event beyond Pesa’s reasonable control, including without limitation acts of God, natural disasters, fires, floods, pandemics, epidemics, public-health emergencies, civil unrest, terrorism, war, government action, acts of regulators, sanctions, telecommunications, internet, banking, payment-scheme or third-party-service failures, denial-of-service attacks, cyber-incidents, power outages, strikes, and labour disputes.

19. Changes to these Terms

Pesa may amend these terms from time to time. Where required, Pesa will give members at least two months’ notice of a change before it takes effect, by electronic communication, by notice within the platform or by publication on the Pesa website. A member who does not accept a change must stop using the group stash feature before the change takes effect; using the feature after that date is acceptance of the change. Some changes (for example, changes required by law, changes that are favourable to members, or changes to features that have not yet launched) may take effect immediately or on shorter notice where the law permits.

20. Suspension and termination of access

Pesa may, at its sole discretion and at any time, suspend, restrict or terminate a member’s access to the group stash feature or to the platform as a whole, including (without limitation) where Pesa reasonably believes that the member is in breach of these terms or of any group rules, that the member’s use of the feature is connected with unlawful activity or fraud, that suspension or termination is necessary or appropriate to comply with applicable law, or that Pesa’s legitimate risk-management interests require it. Where the law permits, Pesa will inform the member of the action taken; in many cases the law will not permit Pesa to do so.

21. Privacy and data

Pesa’s processing of personal data in connection with the group stash feature is governed by the Pesa Privacy Policy. By joining a group, each member consents to the disclosure to other members of the limited information necessary for the operation of the group, including the member’s name (or chosen display name), group role, contribution status and payout schedule. Members must not use information about other members for any purpose other than the proper operation of the group, must keep that information confidential, and must not market to, or otherwise solicit, other members.

22. Communications and notices

Pesa will communicate with members in English, through the platform, through the email address registered to the member’s account, or through any other means the platform makes available. Members must keep their contact details up to date. Notices given through the platform are deemed received when delivered to the member’s in-app inbox or when sent to the registered email address, whichever occurs first.

23. Complaints

If you have a complaint about the services, please contact Pesa at support@pesapeer.com or by telephone on +44 (0) 161 552 8525 between 08:00 and 20:00 UK time. Pesa will handle the complaint in accordance with its internal complaints procedure and applicable FCA rules. If you are an eligible complainant under those rules and remain dissatisfied with Pesa’s final response, you may be entitled to refer the complaint to the Financial Ombudsman Service. The Financial Ombudsman Service is not, however, a forum for adjudicating disputes between members of a group; such disputes must be pursued by the members concerned through the appropriate civil channels.

24. Third-party rights 

A person who is not a party to these terms has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any of these terms, save that any affiliate, director, officer, employee or agent of Pesa may enforce clause 16 (Limitation of liability) and clause 17 (Indemnity) for its own benefit.

25. Assignment

A member may not assign, transfer, charge, sub-licence or otherwise deal with their rights or obligations under these terms or under any group contract without Pesa’s prior written consent. Pesa may assign or transfer its rights and obligations under these terms to any of its affiliates or to any successor in business, on notice to members.

26. Severability and waiver

If any provision of these terms is found to be unenforceable, the remainder of these terms will continue in full force and effect, and the unenforceable provision will be replaced with an enforceable provision that gives effect, so far as possible, to the original commercial intent. A failure or delay by Pesa to enforce any right under these terms is not a waiver of that right.

27. Entire agreement

These terms, together with the Pesa terms of use, the privacy policy, the fees table and the group rules of any group in which you are a member, constitute the entire agreement between you and Pesa concerning the group stash feature, and supersede any prior representation, understanding or arrangement on that subject.

28. Governing law and jurisdiction

These terms and any non-contractual obligations arising out of or in connection with them are governed by the laws of England and Wales. The courts of England and Wales have exclusive jurisdiction to determine any dispute arising out of or in connection with these terms, save that a consumer member resident in another part of the United Kingdom may also bring proceedings in the courts of the part of the United Kingdom in which they are resident.

29. Contact

PESAPEER PAYMENTS LIMITED, Milton Hall, Ely Road, Milton, Cambridge, England, CB24 6WZ. Email: support@pesapeer.com. Telephone: +44 (0) 161 552 8525.

Member acknowledgement

By creating or joining a group, I confirm that I have read and understood these terms; I accept the risks set out in clause 9; I acknowledge that the stash arrangement is a private contract among the members of my group and that Pesa is not a party to it; and I agree that the relationship between Pesa and me in connection with the group stash feature is governed exclusively by these terms.