Rip off Bank Charges why is nothing done about it

ali_c_2

I am appalled that this kind of conduct is allowed in the UK still. I have sent a payment in US Dollars from Lloyd's bank in the UK to Barclays Bank again in the UK and everything seemed to be fine until the recipient got the funds and was short $31usd this is what happened:

i made a transaction which cost me £15 to Lloyds and the exchange rate slightly lower than market but didn't mind too much - it was just over $2000USD and the receivers bank was charging $7.50 USD to receive the us dollars again ok with that. My issue was the missing 31USD that was taken along the way .

After calling the banks I was to find out that the transaction went to the USA to Wells Fargo first then they charged $31 to "clear" the money and send it on to Barclays, bearing in mind both the sender and receiver branches are in London !!!! I must say I really feel that I have fell for a big con and can you imagine how much that they must make like this on a daily basis - i also think that if i was to send to a wells fargo account it would go via Barclays so they can extort the money that way too!!

Is there no law against this kind of behavior in the UK? FCA didn't want to know all they said is its in the T&C's so all legal and the financial ombudsman didn't want to know either - its almost like dealing with the M A F I A

Zanderman

ali_c wrote: »

.... I have sent a payment in US Dollars from Lloyd's bank in the UK to Barclays Bank again in the UK ...

Why did you do that? Why not just send in UK pounds and let the recipient convert it?

mgdavid

ali_c wrote: »

....... I have sent a payment in US Dollars from Lloyd's bank in the UK to Barclays Bank again in the UK ........

most odd; were either the Lloyd's or Barclays accounts US dollar accounts? If not then what was the point of doing what you did?

PeacefulWaters

Well you know for next time.

Why on earth did you complain to the FCA?

Have you complained to your bank? The FOS won't have much interest until you do.

eskbanker

ali_c wrote: »

Is there no law against this kind of behavior in the UK?

No, there is no law against companies charging money to provide services....

Likewise, there's no law against doing some research on consumer finance websites to find the most cost-effective means of making such transactions, e.g. https://www.moneysavingexpert.com/banking/foreign-currency-exchange, before going ahead.

ali_c_2

@eskbanker - I dont mind the fees its just the one to send it to the USA and back seems exorbitant why cannot the 2 banks just do a straight forward payment !!!

@mgdavid & @zanderman it was to pay a bill in USD to a USD bank account based in the UK for a foreign business all a bit strange but yes it had to be done that way.

JuicyJesus

ali_c wrote: »

@eskbanker - I dont mind the fees its just the one to send it to the USA and back seems exorbitant why cannot the 2 banks just do a straight forward payment !!!

USD clearing between banks is all done through the US, even between UK banks. As such your dollars will have been sent from the UK, to the US to be cleared between the two banks and then back to the UK. A fee has been levied for this, and it is entitled to be.

Your complaint is with the US Federal Reserve system, and potentially with whoever you're paying for wanting paying in such an idiosyncratic way.

ST-User

Use Transferwise.
Much cheaper and the recipient gets the exact amount you specify.