Monday, January 30, 2023

UK Watchdog Warns of Price Fixing Among Money Transfers Firms - PYMNTS.com

Last updated Wednesday, January 25, 2023 16:05 ET , Source: TopWireNews

The Financial Conduct Authority (FCA) alleged in a Wednesday (Jan. 25) news release that Dollar East, Hafiz Bros Travel & Money Transfer, and Small World Services fixed prices charged to Glasgow customers who wanted to send money to Pakistan.
As a result, the agency said, those consumers might have been overcharged, though it is unclear if any laws were broken. PYMNTS has contacted all three companies for comment but has not yet received a reply.
“It is the FCA’s view that, for a period in 2017, the 3 firms coordinated on the exchange rate offered to consumers for converting U.K. Pounds into Pakistan Rupees in transferring money to Pakistan,” the authority said.
It added that the companies “fixed the level of a flat rate transaction fee charged to consumers when making money transfers from the U.K. to Pakistan via Small World’s services.”
The FCA said its findings are “provisional” and may not lead to further enforcement, and were issued to notify the company the authority thinks they have infringed on competition law.
The authority’s findings come a little more than three months after the U.S. Consumer Financial Protection Bureau (CFPB) announced a $950,000 penalty against Choice Money Transfer, which merged with Small World in 2011.
As PYMNTS reported, the CFPB said the company failed to accurately share crucial prepayment information with remittance senders, including transfer fees, current exchange rates, and the date the recipient would get their funds.

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