Internet forums, blogs and even facebook fan pages have been created by angry customers absolutely astonished by the prospect of seeing hard earned money being swallowed up.
With the help of Independent Foreign Exchange Price Comparison website http://www.mycurrencytransfer.com , we try to uncover some of the potentially dubious practices of CCE and provide an easy to read summation of events. Next time you send money overseas, it is important to use a reputable currency firm that are FSA authorised (not merely registered).
• Not operating segregated client accounts.
As a bureau de change and only registered (not authorised) by the FSA, Crown were not required to operate segregated client accounts. These segregated accounts should ‘ring fence’ your funds and are totally separate from the day to day running of a business. It ensures protection and security of funds. Reputable foreign exchange firms that facilitate international money transfers will be authorised by the FSA and operate properly managed segregated client accounts.
• Selling Above Inter-Bank Rate – A Recipe for Disaster.
Whilst there is one thing trying to attain market share by offering such ‘cheap rates,’ it is another selling euro or dollars above the inter-bank rate. It is commercial madness to sell at a loss. This is the equivalent of selling shares cheaper than on the open market, which would ring alarm bells. Any company offering to sell at a loss indicate there are tremendous in-house cash flow problems or the alternative view of reputable firms spoken to, that there is some type of currency speculation going on.
• Send Money Overseas - FSA Registered V Authorised.
Being merely ‘registered’
hurdle of a ‘fit and proper’ test.
• Demanding 100 % of your money up front for delivery at a date in the future.
This is another cause for concern and adds weight to the argument that perhaps there is currency speculation with client funds going on. Traditionally, using a forward contract when sending money overseas can be a great tool to manage currency exposure and protect against adverse currency fluctuations. However, reputable FSA regulated foreign exchange brokers will normally ask for only 10 % deposit when the order is made, and the balance due on completion of the contract.
It is totally unfair and a cruel act carried out by CCE. They seem to have operated a high risk business model. However, there are a number of reputable foreign exchange firms that operate a low risk business model, are stringently regulated and deliver a better-than-
On behalf of the whole team at http://www.mycurrencytransfer.com , we wish all people involved a speedy resolution and a sincere hope that funds will be returned to customers as quickly as possible.
The team at MyCurrencyTransfer.com
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MyCurrencyTransfer.com is an independent foreign exchange price comparison website aimed at finding visitors the 'fairest deal on currency' when sending money overseas.