An Open Letter to People Per Hour: Please Comment Below on Payments
Dear People Per Hour,
I wanted to let you know just how much havoc, chaos and panic you have caused in my life since you announced your decision to subject us to the new payment clearance process and times. If you are a freelancer reading this, please comment below so we can try to support each other and so that we can let PPH know what damage this is causing us and that we, as freelancers, are not only the lifeblood of the platform but also real people with real lives and families to support.
I am a freelancer, but I am also a single parent to two young children. We have all lived through a year and a half of the most disruptive time in any of our lives due to the pandemic. I am sure it hasn’t escaped PPH’s attention that freelancers have had a rough ride during this time. I am mainly referring to the UK here as that is where I am from, but I am sure these problems are global for freelancers. As freelancers, we did not enjoy the benefits of furlough, of the Job Retention Scheme and many of us were not eligible for government grants or benefits. As we start to move out of the pandemic, many of us are reeling from the effects and have now been served a huge blow by PPH-a platform that is supposed to support us as freelancers and make our lives easier-by making us wait up to 18 days to receive money we have earned and worked hard for.
I don’t know about other freelancers, but my family relies solely on the money I earn from PPH and we live from invoice payment to invoice payment. We don’t live beyond our means, there is only me earning money and I work very hard.
On Friday, I came to the realisation that due to the new payment clearing processes, we did not have enough food to last us the weekend, let alone 18 more days. My rent was due on Friday, and I have not been able to pay that. So, we are hungry and on top of that I am now really anxious about not paying my rent. I earnt enough money this month to pay my rent and buy us food and everything on top, but it is sitting in my PPH account, and I cannot access it. This morning, my son’s school had to arrange a delivery from our local food bank. I have never, ever had to ask for anything like this before, but we had no choice.
I have not heard anything from PPH that makes me understand why they are doing what they are doing. I simply do not believe that in the world of instant payments, high tech and on-demand services why they need to hang on to our money for 18 days. It just won’t work for me in the long term, but at the moment, I am wondering what we will do in four days’ time when the food runs out, when I can’t pay my internet bill leading me not being able to work at all and when the stress of this will just be too much to bear.
I hope people don’t think I am being overdramatic, for some freelancers this will just be a frustrating experience, but for some of us, this is having real life, damaging effects on our lives and the lives of the people we love- and I am sure I am not alone.
Please comment below and tell PPH how this is affecting your life if you can.
Yours Sincerely,
Meri Williams
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Official comment
Hi Meri
Thank you for sharing your open letter. Firstly, we want you to know that we hear you and we're truly sorry to hear the impact that our new payments process has had on your life. We completely understand that the last year and a half has been really tough for everyone. Yours and everyone’s frustration is understandable, and in future we will make sure to communicate changes like this much further in advance to give you more notice.
Unfortunately this is a necessary process as we have grown and have to meet new regulations. Some freelancers have asked why they can spend the money freely on PeoplePerHour while their funds are in clearing. This is because we can retrieve any funds spent on PeoplePerHour products, if any red flags occur during the clearing period. Please see our blog here for more details on the reasons why we’ve made this change.
2020 hit the self-employed extremely hard and we’ve taken steps to provide support during this time. One of the ways we’ve done this is by lowering our fees to the lowest fee tiers in the market, to further support our community of freelancers during these uncertain times.
The tier system that allows for faster clearing periods is a result of in-depth data analysis. Many fraud and dispute cases that we have received over the years were included in this investigation. As a rapidly growing business, we have to follow stricter regulations and complete more checks before we can release payments that are made through our platform in order to protect our users.
Clearing funds faster for high earning freelancers is a form of rewarding loyalty, essentially we can spend the extra time required to monitor for fraud more closely as it is more acceptable for us to take the hit when we have to cover the cost incurred by fraud. Thus we offer this higher level of service primarily to Freelancers that earn a lot of money from work done on our platform rather than people occasionally earning small amounts.
We are truly sorry that you have been impacted in this way Meri. We continue to strive to improve our customer service process to ensure that people are responded to as quickly as possible moving forward and we’ll do our best to make sure that our communication on similar changes is much better in the future.
Best wishes
PeoplePerHour Customer Support
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Hi Meri,
Thank you for your very open and honest declaration.
I am completely with you and I understand the predicament you are in.
None of the linguist I have spoken to who have contacted PPH have heard anything back from them. I just wonder what exactly is going on!
I decided long ago that only relying on this (or other) portal(s) was not going to work for me and I luckily only rely on PPH for a very small part of my income. Nevertheless it is unacceptable that they make me wait almost 18 days to clear my hard earned £110.
I am wondering if there are any legal eagles out there who are willing to have a look into this.
Regards
Thorsten
Owner/Translator HPD Translations
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Hi Meri,
I'm so sorry that this is your reality at the moment - I feel like if it wasn't for my partner's contribution to our finances, I would be in a very similar situation to you with this new system. The whole point of PPH has always been that people need services done fast, and to a high standard - that was PPH's USP. And in return for that, freelancers have been able to be paid fast. I would say "everyone was a winner", although this isn't the first time PPH have introduced measures that have been to the detriment of the seller, who, as you say, are the very foundation of the platform - numerous commission fee changes, ranking systems and algorithms that aren't reflective of a seller's performance, a refund system that automatically punishes the seller regardless of the circumstances....the last few years have been fairly relentless.
But the withholding of fees for an extended period has been one of the worst yet - How can you sensibly manage your finances if the majority of your income comes through this platform? Where is the incentive to take on quick last minute jobs, if you know you're not going to see that money for ages? And also, what are they DOING with the money? The whole "security checks" line has got to be rubbish, as why does the time period change depending on how much you earn? If it was a series of checks, it would take a set amount of time that would be the same for everyone. And the new policy of PPH being able to take money back out of accounts that have been inactive for 30 days, and claim it as their own? How is that justified? There are just so many questions, and I haven't seen PPH offering any clear answers - a lack of transparency is so telling.
I don't think it's a coincidence that since this policy was introduced, the jobs that I have coming my way have drastically reduced. Business seems slow not just for me, but looking at the rankings, for everyone... Are there any freelancers out there who are ok with this policy? Have new policies also been introduced for buyers that are putting them off?
You're not on your own here, Meri. I hope this is just another temporary feature for this site, as I can't see it going well for anyone - PPH included.
Rachel
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I'm stunned at hearing about this.
I've worked with some excellent freelancers on PPH and would like to continue to, but if money is being withheld for an unnecessarily long time from the freelancers who complete work promptly and who I pay promptly, then I'll be taking my business elsewhere.
PPH what is going on? I've only heard about this from freelancers who are suffering from delayed payments.
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@Rachel- I could not have put it better myself. The lack of transparency is really worrying and downright appalling. It would be interesting to see if there are any freelancers who actually approve of this new system, I agree. It has just got to a point now where it is no longer just frustrating, it is desperate.
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Hi Meri,
Thanks for this letter. I can sympathise. They have been messing with payments for some time and offering different excuses on each occasion. Like you, I found myself having to scramble to get other invoices paid in order to get the rent paid. When they do respond to complaints they sound almost irritated and affronted that freelancers should demand payment.
This platform already takes high fees from freelancers, and often connects us with buyers who can't be trusted to pay on time. To hold onto money for as long as they do shows the disdain they have for the people who use this site.
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Meri,
This is exactly how I feel. I was only able to feed my daughter while waiting 17 days for an invoice to clear because friends and family have rallied around. I now have additional costs to cover because I wasn't paid in a timely manner and this wasn't the first time I've had issues with their invoicing.
The new system works against smaller freelancers, with those paid the most being treated better. I have nothing against freelancers who can make £6000 in two months, I think that is awesome. But for PPH to state, the changes are due to money laundering legislation and then to say that the more you are paid, the quicker your money will be released is appalling. Every aspect PPHs business is now stacked against the smaller freelancer, those of us who don't earn enough to have a decent amount in the bank 'just in case'. It is a business model that is unsustainable, unfair, and does nothing for the reputation of the company.
The only reason I remain with PPH is the two ongoing clients that I have, who always pay promptly, work ethically, and pay well.
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Dear PPH
I hope you read through Meri's letter and can offer some kind of credible explanation.
Can you not see how you are ultimately crucifying your own livelihoods as well as ours? We have to look after our clients in the hope that they'll give us more work. You need to look after us, and we pay your wages. If we can't attract new buyers, it goes down the line.
Two weeks plus clearance for all jobs is ludicrous and killing off this platform. We rely on a turnaround of income to keep us afloat. We also need honesty, and integrity. We have to work together to make this succeed. PPH has a wealth of knowledge and business know how amongst its members. Try asking us for suggestions to improve the platform. We know what works and what doesn't. I'm afraid the current business model is doomed to bring everything down like a house of cards, if you're not careful.
Please can someone from PPH do the decent thing and help us.
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I just had a conversation with their Live Support staff. It's clear that they don't actually know what's going on save for the stuff that has been mentioned in the blog (usually the case with 1st line staff as they're just there to answer the easier questions and escalate the difficult ones). They did tell me that there are people performing these 'security checks' rather than them being automated but couldn't tell me why it takes 14 days for a person to do so or the nature of the checks themselves nor who they are regulated by.
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I mean, what could they possibly be checking that is in anyway related to financial security or laundering? Are they checking credit histories of buyers? Are they running background checks on them? I haven't heard any buyers come forward and say they have been asked for extra information...And what if it's a repeat client? Why would repeat checks be necessary in this case? And WHY aren't they providing their customer services with this information to pass on, if it really is the case? Surely they must have predicted that these questions would be coming...it's all very unsatisfactory.
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Hi Rachel, Catherine, Nancy and Dan-I completely agree with all you have said. I am amazed that PPH are happy for us to come to all these conclusions and theories as to why they are doing what they are doing and not comment on it at all. I have tried on social media, but they just suggest I contact their customer service team...and we all know how soul destroying that can be. A few other people on other threads have written to their MPs and the FCA- if anyone has a letter they can share that others could use as a template so we can also contact our MPs and the FCA that would be great- someone with a greater understanding of the process and the legal/financial elements. I know a few people got replies from their MPs saying they would contact PPH- if we all contacted our respective MPs and the FCA it might make an impact? I have been trying to write a letter but struggling to get the key points across.
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I've been calling them out on social media for weeks (Twitter mainly), all I've had is, get in touch through this link.
I think we need to continue to call them out and get as many buyers onside as possible. One of the other things I noticed, I may have missed it, is under the new 14-day system, it doesn't state whether it is 14 working days or not. If it's working days, then that could mean 18+ day waits all the time.
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Hi Meri,
I've just had a reply from the FCA and they are not interested, and as far as they are concerned PPH are not selling the kind of services that they regulate. They did suggest the Citizen's Advice Bureau, which I had not thought of. They can be helpful with legal issues like this. It is difficult dealing with a company that doesn't fit into an established category. It's not a financial service, even though they take our money on our behalf and sit on it. It's not an employment issue, even though it's our work.
How do you deal with a company that doesn't seem to care about their public image in any way? I'm convinced they make more money from the low value junk projects, especially if they can avoid paying freelancers altogether, so they don't care if anyone leaves the platform to go somewhere else.
I'm fortunate that I don't have any immediate financial problems but I will reach the point eventually where I have no more work coming in but I'm too many years away from claiming a pension. I started building up a profile here 5 years ago and adjusted and developed my skills to be better able to do the types of projects on offer, but I feel I've wasted a lot of my time because PPH have let everything fall apart. I haven't won a new project as a result of submitting a proposal since before the pandemic started. I used to be able to pick something up every week, if I was looking. It's only repeat work and occasional direct enquiries that justifies me being here. Despite having hardly any work, my ranking hasn't dropped very far. It drops a few places and then a £30 invoice puts it back to where it was. Most of the freelancers registered on the site must be earning almost nothing. -
Hi Meri
Sorry to hear you've been hit so badly by this. I'm fortunate to have another income stream as well as PPH but it's not huge and PPH was doing increasingly well for me over the last 18 months so it became my major source of money. My PPH takings have been hit badly not just by the delays but by a big drop in the amount of good quality work available here since the delays started.
I'm trying to get started on Upwork and I'm expecting a slow start but hope it ends up doing well - maybe you could try one of these other places too?
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Thank you all for your replies. I too have invested so much time and effort into my presence on PPH- it is like being stuck in an abusive relationship but not being able to leave because all your assets are tied up in it! I have tried Upwork before, but found clients just were not willing to pay what clients on PPH do. That was a few years ago, maybe it has changed- I will look now.
Simon, I hadn't thought about Citizens Advice either, I will get in touch with them.
Catherine, it would be great if someone with some clout could see your/our posts on Twitter and get behind us! As it is, I don't think PPH has a strong presence on Twitter.
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Thanks Mohamed- you are right, PPH are offering no explanations and evading reasonable questions. Thanks for the links to the articles too. The fact that we are all comparing PPH to scammers, scandals and frauds surely cannot be a good look for their brand- but as Simon says, do they even care? Someone on Twitter used the word 'toxic' to describe them earlier. It's a good description.
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@Meri. Thank you, Meri. This is the ONLY reasonable explanation. I d appreciate that you - and everyone else who has made a comment here - read the Wirecard story as well as take a look at PPH's CEO's blog. Our collective action now is to bring those people running PPH, whoever they are, to justice.
I'll put all my knowledge and experience to end this farce.
You cannot be scammed and simply be told to "wait" of that "we're growing" or "that's our policy." his is how CRIMINALS work, not respectable professionals.
Now, in addition to me, who is willing to start a really wide digital campaign (and I mean a real campaign, not just some posts here and there on some social platforms) to expose PPH not only on this recent "payment scam" but also on each and every issue raised for years now but with freelancers left to reel or blame themselves?
@PPH: Expect nothing less than ruthlessness. You at PPH have been so ruthless to freelancers/seller who pay for your salaries and, for you Mr. Xenios Thrasyvoulou (PPH CEO), makes you feel good in front of your angel investors who fund you. (@Xenios Thrasyvoulou: are you scamming your investors too?)
What goes around, PPH, comes around. You people at PPH started it. So, expect REAL HELL.
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PPH is growing in terms of the increasing number of freelancers trying to join, mainly from Asia. However, in terms of jobs posted it's declining. It wasn't that long ago that there were 9000 jobs on site. Today we're slipping below 3700.
To say PPH is growing is misleading. It's the number of active buyers which needs to increase, not the number of members. I might add that the calibre of new members is appalling - but that's another story.
I fail to see why PPH don't see the business sense in investing in its loyal customer base. I've done 11 years, Meri has an established clientele, as do many, many Top Certs and 5s, etc. Should be doing all it can to keep us happy - yet we're not seeing it. I'm not sure what we can do, quite honestly. Trying a new platform when you've earnt over 100K here, and are a TOP Cert, isn't easy. It's like having a rug taken out from your feet and having to start again. Unfortunately, as family breadwinner I can't take that gamble. I have to sit it out here and hope things improve.
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Hi Meri.
I'm deeply touched for your sensitive and so true comments in the letter. Every work is right, true and adjusted to the reality.
I still do not understand why PPH turned against us, the ones who are making money for them but probably that this unfortunate decision is base on their avarice. More and more money wanted because all the amounts produce more bank interests if they rest in their account for weeks.
Seems that nobody in the staff is worried about our day by day problems, nobody think that bills cannot wait too for weeks and payments delay could cost us a lot.
I will not return to work in this platform till they will re-consider this bad decision. I'm sorry for my dear recurrent clients who always come back for me with new projects but I will be not anybody else puppet or puppy wagging the tail after such a lack of consideration for our work and effort. There are other good sites for work who really appreciate someone's good skills and efficiency.
God bless you and all the other freelancers from this site.
Florin
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Nancy, me too. The thought of building up another reputation on another platform when I am a Top Cert seller on PPH, have earned over £150k since 2014 and all my lovely feedback is just not an option at the moment. But maybe that is what PPH are relying on? That we will all just accept it, like we had to all those years back when they increased the fees. The kind of ironic thing is when they increased the fees and we were all furious, I started to move away from PPH, found my own clients etc, but then they brought in the same day payment processing and that was so good for my cashflow, I stayed.
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