Exchange Rate Scam that Could Cost You Hundreds Whilst Abroad

Many people on a summer holiday last year were stung by shops and restaurants charging British travellers in pound sterling instead of the local currency, so they don’t charge the current exchange rate but use their own, normally around 5%.
 
Sept. 13, 2011 - PRLog -- Many people on a summer holiday last year were stung by shops and restaurants charging British travellers in pound sterling instead of the local currency, so they don’t charge the current exchange rate but use their own, normally around 5%.

“With £4 billion expected to have been spent abroad this summer, foreign shop and restaurant owners are expected to see big profits just from charging people in pounds rather than the local currency, however its not just shops and restaurants that add on these charges, but also banks when paying by card or using a cash machine abroad,” said James Jones from Poor Credit Loans 4 You, who specialise in helping people acquire holiday loans.                http://www.poor-credit-loans-4-you.co.uk/holiday-loan-holiday-cash-holiday-loans-for-poor-credit-holiday-loans-for-holidays-holiday-loan.html

Last year companies are expected to have made around an extra £20 million from these additional charges and around 1.2 millions transaction in just July and August were converted into pound sterling by retailers, forcing the British holidaymaker to pay more and it is predicted these figures will soon rise even more.

Bob Atkinson, travel expert for holiday comparison site Travelsupermarket, said: ‘Sneaky shops and restaurants are increasingly charging tourists in sterling, knowing that people feel more comfortable with transactions in their own currency. But this is a huge rip off.

‘The golden rule when abroad is to always pay in the local currency, never pay in pounds and pence.’

It is believed that the majority of these transactions that rip people off were made in large tourist resorts.

When paying for a meal or shopping when abroad your are supposed to be given the bill in the local currency and you should be given the choice of paying in sterling if you choose to do so.

If you do pay in sterling they will add around 5% or more to the bill and most of the time will not tell the customer about the additional charge. Instead it will appear on the card receipt in the small print and by then it is too late to complain.

Britain’s biggest building society, Nationwide and the consumer group Which? say that the practise of charging in sterling is on the increase and that often holidaymakers are not given the choice of what currency to pay in.

“There are many cash machines in different countries that use the technique of charging in sterling, it is called ‘dynamic currency conversion’. Instead of offering the cheaper Visa or MasterCard rate, the transaction is converted into pound sterling there and then, using a poor exchange rate set by the bank,” said James Jones from Poor Credit Loans 4 You.             http://www.poor-credit-loans-4-you.co.uk/holiday-loans-uk...

Mark Bowerman, spokesman for trade body the UK Cards Association, says ‘Paying in sterling may be appealing because you know exactly how much will appear on your bank statement'.

‘However, the exchange rate used by the retailer will almost certainly not be as competitive as the rate offered by your card company. If you are in doubt, ask for the bill in the local currency’.

Many people feel these additional charges are a rip off as most holidaymakers would generally prefer to pay in pound sterling because they feel more comfortable with it, yet they are being charged excessive amounts for the privilege and that may not be the end of it as there is no limit to how much banks or retailers can charge, and no consumer protection for people who realise they have been ripped off.

Many credit cards do not charge for cash withdrawals abroad, although you will be charged interest from the moment you make a transaction.

Amongst the best cards are the Halifax Clarity and the Santander Zero as they offer a lower interest after transactions than other cards.

If you are looking to avoid paying by card altogether when you are abroad you can get a pre-paid card. You put money on to this card in a currency of your choice with a set exchange rate and you can pay with these cards at the majority of places abroad.

The cheapest cards are the Caxton FX and the FairFX, as unlike many of the other cards they don't have a fee for purchases.

Getting hold of one of these cards is yet another area where you can be ripped off as Travel Agents will try to sell cards to you and they can be expensive, so it is best to do you research on these cards.

“These are all great ways of saving money and avoiding rip offs when abroad and taking advantage of them could make your holiday an all round more enjoyable and cheaper experience,” said James Jones from Poor Credit Loans 4 You.

Poor Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.

Poor Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.

Poor Credit Loans 4 You is also covered by the Financial Ombudsman.

Poor Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

For help, phone 0800 215 5860
Or Visit: http://www.poor-credit-loans-4-you.co.uk/loans-for-holida...

~Ends~

Notes for Editor:

Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom

Tel: Free Phone 0800 215 5860

Poor Credit Loans 4 You was formed in order to ensure people with poor credit had access to specialist help in securing the poor credit loans they need.

From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing poor credit loans for people with poor credit.

Poor Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.

Poor Credit Loans 4 You is also covered by the Financial Ombudsman.

Poor Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

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Poor Credit Loans 4 You is a top UK specialist for Poor Credit Loans for people from all over the UK.

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