oBike users urged to file proof of debt amidst liquidation

A Singapore consumer group said the bike-share firm will appoint a liquidator to distribute its assets.

Following the closure of oBike’s Singapore operations, the Consumers Association of Singapore (CASE) said oBike Asia will be appointing an independent liquidator to handle the distribution of their assets and remaining affairs.

“Upon commencement of the liquidation, there will be a stay of proceedings on all litigation action. This means that any claim by consumers against oBike will not be able to proceed,” it said in an announcement.

Users took to social media and petitions to complain against oBike after it did not disclose how it will refund their $49 deposit. Some users also found out that their deposits have been converted into SVIP subscriptions without their permission.

CASE encouraged affected consumers to file their Proofs of Debt against oBike with the appointed liquidator once the company is in liquidation.

“Consumers should also attach copies of any relevant receipts or other supporting documents to the Proof of Debt form,” it said. “Those who are unsure about how to file Proof of Debt may contact CASE for further assistance.”

Meanwhile, affected consumers who have paid a deposit/membership fee to oBike via their credit card should contact their card issuer immediately and ask for a chargeback. However, this only applies for transactions entered in the last 120 days.

“We encourage consumers to minimise their prepayments/deposits where possible, as their advance payment may be lost in the event of an abrupt business closure,” CASE said.

“Consumers who have reservations about paying a deposit may wish to consider other bike-sharing options that do not require a deposit payment or reduce their risk by choosing a ‘per use’ option, where they pay a small amount of money each time they use the bike-sharing service. They should also look out for businesses that offer protection for their prepayment/deposit,” it added.