As we reported yesterday, Peerflix is to close its core DVD sharing/ swapping business April 23. Since then we’ve heard reports from users who are having problems cashing out their Peeflix accounts. Here’s what one reader received:
The Peersafe Protection Program will also be terminating effective April 23, 2008 meaning that you will no longer be able to make any Peersafe claims starting April 23, 2008. So, if you have DVDs that you have been holding on to but were planning to send at some point, now?s the time! If your Trade Cash account balance is greater than $10 and you would like to cash out your remaining Trade Cash balance, you must do so before April 30, 2008. To request a cash out of your Trade Cash, please log in to Peerflix.com and click My Account in the upper right corner, then click the My Cash tab and then click on the Request Cashout button and follow the indicated steps. As of April 30, 2008 you will no longer be able to request any Trade Cash payments from Peerflix and your Trade Cash will immediately expire and be forfeited. All cash out requests remain subject to the terms and conditions set forth in the Peerflix Service Policies and will be charged a $10 processing fee.
Closing a service and charging users $10 to cash out is a little rough, but not only that they’ll have to wait as well. After following the process, they received this message:
Please note that requested amount is not removed from your cash account until the request processed. Cashout requests are processed and paid approximately 45 days after the end of the month in which you made the request. You will receive a confirmation notice when your request is processed and your payment is on the way. If you do not have the necessary funds in your account at the time payment is made, you will receive the remaining balance, but under no circumstances will we issue disbursement for less than $10.
45 days from the end of the month would place the transaction due date as mid May, 3-4 weeks after Peerflix is due to cease trading. As the reader commented, it “doesn’t sound good.”
For a company wishing to continue (in another form) as an ad network, leaving your existing customers empty handed isn’t going to create a lot of goodwill going forward. Peerflix burnt through $10 million in funding received over two rounds from 3i Group, Battery Ventures and BV Capital.