halifax foreign transfer exchange rates

rt2011

Thanks Linda! Anything you can find out about a cut-off level would help. I spoke to someone at halifax who seemed to be confused by the terms "retail rate" and "market rate".
It's going to be difficult to get any info out of these people!! I'm going to the branch later on to discuss it with someone face to face!

ERICS_MUM

rt2011 wrote: »

Thanks Linda! Anything you can find out about a cut-off level would help. I spoke to someone at halifax who seemed to be confused by the terms "retail rate" and "market rate".
It's going to be difficult to get any info out of these people!! I'm going to the branch later on to discuss it with someone face to face!

I've just e mailed an old colleague who will either know or can easily find out. She's out of the office until Monday but I'll post as soon as she comes back to me.

Linda

rt2011

That's very nice of you. I'll put the letter on hold until Monday.
I'm also not sure how to formulate my complaint. Should I just ask them to explain why they used this rate? Could I ask them to give me more money? I'm so confused!!!

ERICS_MUM

rt2011 wrote: »

That's very nice of you. I'll put the letter on hold until Monday.
I'm also not sure how to formulate my complaint. Should I just ask them to explain why they used this rate? Could I ask them to give me more money? I'm so confused!!!

If I can get confirmation that my bank does have an upper limit then you could quote this in your letter ( I'll tell you which bank it is at that stage!). I cn suggest some terminology for your letter if you like.

roonaldo

blimey i reckon thats about £750,000 you exchanged.

im not really sure how Halifax are at fault, theres no wrong doing. If there was a cheaper way to exchange it, why didnt you check it out before?

ERICS_MUM

ashleyingle wrote: »

Unfortunately there is nothing you can do. It would be extremely hard to try to get funds back. Banks such as Halifax, norrmally profit 5% of the total value transferred. they will take this from the difference in inter-bank rates and the rate you actually got.

My understanding of the OP's "issue" is that when Halifax received the dollars they converted them at the bog standard "retail customer" rate without referring to him first - such a large amount for an individual should have been flagged for specific action.


Clearly such a large sum should be converted at a much better rate (obviously not market/wholesale rate but much better than would be used for a few hundred $$ sent over by Uncle Joe). I'm sure that if the money were for a corporate customer they would not have received this rate.

( Obviously if they did contact him and told him the rate they would use and he accepted it, and only queried it after he received the ££ then that's a different matter.)

Anyway I'm checking out what would have happened at the bank where I used to work and this will clarify whether or not Halifax are in-line with other banks. I think it's worth following up.

Apols for the long reply and for any jargon I've used - once a bank manager always a bank manager :eek:

Linda

rt2011

The amount transfered was not 750000, it was about 10 times less.
I didn't have a say on how the money was sent.
It looks like the person who carried out the operation in France didn't follow the right procedure which would have been to change the money in france and send it in sterling. Instead in was sent in euro and gave the halifax the opportunity to exchange it at an outrageous rate.
We're sending a complaint to the French bank also as it's absolutely outrageous that a simpleton who doesn't know what the procedure on sending money abroad is allowed to deal with such large amounts of money.

What halifax did might be legal, but I feel it's not right to rip off a customer of 10 years.

Linda, thank you for taking the time to find out what the procedure is in this other bank.

dunstonh

I did a stint on a foreign desk at a bank many years ago and we always told people to get it converted to the destination currency at the senders end as it would usually end up being a more effective way of doing it. The sender can also elect to pay all the fees or not. This way the exchange rate decision is made by the sender.

and gave the halifax the opportunity to exchange it at an outrageous rate.

Halifax publish their rates and their spread either side is easily calculated. That is their charge and if you dont like it then dont use it. They have every right to offer their retail terms and you have every right to accept them or not. That is the bottom line of it. The rate is often negotiable on larger amounts. However, you indicated that its around £75k. So, its not a particularly large amount. I don't know at what point Halifax would offer more favourable terms but its probably in the £100k plus range.

rt2011

dunstonh wrote: »

Halifax publish their rates and their spread either side is easily calculated..

I'm not sure that's true I've searched online and couldn't find the day rates.

I feel a difference of £2000 out of 90000 euro is excessive.

dunstonh

I'm not sure that's true I've searched online and couldn't find the day rates.

It is true. You can contact any branch of Halifax and ask them. Not everything revolves around the internet.

I feel a difference of £2000 out of 90000 euro is excessive.

That is always the problem with a commission system. It is set up so large ones cross subsidise smaller ones. Also remember that it may have passed through several banks on its way to Halifax. So, there are costs there. Many of these are met through cross subsidy.