Help with money transfer company

CarolineV

I recently sold an apartment in Tenerife. The solicitor, upon completion on the sale, recommended a money transfer company to transfer the funds to my bank account in the UK. I was uncertain, as I normally use Wise. However, the solicitor said the company could give me a better rate than Wise. I agreed that they could contact me. The company representative claimed that they could give me a better rate than Wise, there would be no commission fee, and if I kept the funds with them the money would be automatically converted to pound sterling when the rate reach 1.898. I eventually agreed to this. However, this was weeks ago now, and the pound is currently strong against the euro. The forecast is that the euro is only going to get weaker in the next year.

Yesterday I contacted the company and asked when the rate they offered me is likely to be met. I was told that the euro is only like to get weaker, and they offered me an exchange rate to transfer the money. Upon investigation it appears to be an unfavourable rate, and less than what Wise are offering with their commission fee. Compared to the rate I was offered with Wise I would lose about £1,700. This is not a huge amount, however the company had initially claimed that I could save money by using them, rather than lose it.

Any idea what I could do from here? I know that making an official complaint to the company and the Financial Ombudsman could take a significant amount of time, and in the meantime I don't have access to the money from the sale, unless I have it transferred at an unfavourable rate!

wmb194

CarolineV said:

I recently sold an apartment in Tenerife. The solicitor, upon completion on the sale, recommended a money transfer company to transfer the funds to my bank account in the UK. I was uncertain, as I normally use Wise. However, the solicitor said the company could give me a better rate than Wise. I agreed that they could contact me. The company representative claimed that they could give me a better rate than Wise, there would be no commission fee, and if I kept the funds with them the money would be automatically converted to pound sterling when the rate reach 1.898. I eventually agreed to this. However, this was weeks ago now, and the pound is currently strong against the euro. The forecast is that the euro is only going to get weaker in the next year.

Yesterday I contacted the company and asked when the rate they offered me is likely to be met. I was told that the euro is only like to get weaker, and they offered me an exchange rate to transfer the money. Upon investigation it appears to be an unfavourable rate, and less than what Wise are offering with their commission fee. Compared to the rate I was offered with Wise I would lose about £1,700. This is not a huge amount, however the company had initially claimed that I could save money by using them, rather than lose it.

Any idea what I could do from here? I know that making an official complaint to the company and the Financial Ombudsman could take a significant amount of time, and in the meantime I don't have access to the money from the sale, unless I have it transferred at an unfavourable rate!

Where's this company located? Spain? FOS wouldn't apply, the Spanish equivalent if applicable would. You've been had, I'd get the money out as best you can. Could you ask it to make a (free?) euro transfer to a Wise euro account? You'd need to open one if you don't have one already.

CarolineV

wmb194 said:

CarolineV said:

I recently sold an apartment in Tenerife. The solicitor, upon completion on the sale, recommended a money transfer company to transfer the funds to my bank account in the UK. I was uncertain, as I normally use Wise. However, the solicitor said the company could give me a better rate than Wise. I agreed that they could contact me. The company representative claimed that they could give me a better rate than Wise, there would be no commission fee, and if I kept the funds with them the money would be automatically converted to pound sterling when the rate reach 1.898. I eventually agreed to this. However, this was weeks ago now, and the pound is currently strong against the euro. The forecast is that the euro is only going to get weaker in the next year.

Yesterday I contacted the company and asked when the rate they offered me is likely to be met. I was told that the euro is only like to get weaker, and they offered me an exchange rate to transfer the money. Upon investigation it appears to be an unfavourable rate, and less than what Wise are offering with their commission fee. Compared to the rate I was offered with Wise I would lose about £1,700. This is not a huge amount, however the company had initially claimed that I could save money by using them, rather than lose it.

Any idea what I could do from here? I know that making an official complaint to the company and the Financial Ombudsman could take a significant amount of time, and in the meantime I don't have access to the money from the sale, unless I have it transferred at an unfavourable rate!

Where's this company located? Spain? FOS wouldn't apply, the Spanish equivalent if applicable would. You've been had, I'd get the money out as best you can. Could you ask it to make a (free?) euro transfer to a Wise euro account? You'd need to open one if you don't have one already.

The company is based in London, although it also has offices in Spain and Dubai. Funnily enough, they seem to have an office not very far from where my solicitor is based. However, quite a few solicitors and estate agents in Spain seem to use them. I've been looking at doing a Wise Euro transfer, although I'd prefer just to have it in a traditional bank account and I'm uncertain if I'll be covered by FSCS if I use Wise as a bank account.

masonic

You won't be covered by the FSCS until it finds its way into a UK bank account. It sounds unlikely that it is currently protected, but it's not impossible.

You could get a rate from Wise and challenge them to match it (given they claimed they could beat it). This is likely to be the fastest way if they agree. Otherwise the Euro transfer to Wise is a good option.

Sam_666

FSCS covers banks, not money transfer firms like this one or Wise.
Reserach needs to be done before giving money away, not after.

Alexland

Honestly if I was in your position my priority would be to complete the money transfer safely and promptly.

eskbanker

CarolineV said:

The company representative claimed that they could give me a better rate than Wise, there would be no commission fee, and if I kept the funds with them the money would be automatically converted to pound sterling when the rate reach 1.898.

Please say that's a typo - if they really were planning to string you along until the £/€ rate reached that, it was unlikely to have been in your lifetime!

Feel free to name the company btw....

CarolineV

eskbanker said:

CarolineV said:

The company representative claimed that they could give me a better rate than Wise, there would be no commission fee, and if I kept the funds with them the money would be automatically converted to pound sterling when the rate reach 1.898.

Please say that's a typo - if they really were planning to string you along until the £/€ rate reached that, it was unlikely to have been in your lifetime!

Feel free to name the company btw....

Yes it is a typo. I meant 1.1898.  

CarolineV

Sam_666 said:

FSCS covers banks, not money transfer firms like this one or Wise.
Reserach needs to be done before giving money away, not after.

I'm fully aware that FSCS covers banks, not money transfer companies. That's why I'm hesitant to use Wise as a bank account. However both this company and Wise claim to keep money in safeguarding accounts in the UK, which supposedly would give you some level or protection. I was referring to the Financial Ombudsmen, not the FSCS, which is a completely different thing. And I did do my research on this company beforehand. They are a legit company, based in London, registered in the UK, and authorised by the Financial Conduct Authority. 

CarolineV

masonic said:

You won't be covered by the FSCS until it finds its way into a UK bank account. It sounds unlikely that it is currently protected, but it's not impossible.

You could get a rate from Wise and challenge them to match it (given they claimed they could beat it). This is likely to be the fastest way if they agree. Otherwise the Euro transfer to Wise is a good option.

Thanks for the feedback. On the company's website it states that it is authorised by the Financial Conduct Authority, and the money is kept in a safeguarding account with a British bank. This is the same as what Wise does, and presumably this means there is some level of protection, up to a certain amount.  

friolento

CarolineV said:

masonic said:

You won't be covered by the FSCS until it finds its way into a UK bank account. It sounds unlikely that it is currently protected, but it's not impossible.

You could get a rate from Wise and challenge them to match it (given they claimed they could beat it). This is likely to be the fastest way if they agree. Otherwise the Euro transfer to Wise is a good option.

Thanks for the feedback. On the company's website it states that it is authorised by the Financial Conduct Authority, and the money is kept in a safeguarding account with a British bank. This is the same as what Wise does, and presumably this means there is some level of protection, up to a certain amount.  

With electronic money institutions like Wise, there isn’t any protection up to a certain amount. Only FSCS guarantees an amount  https://www.fca.org.uk/consumers/using-payment-service-providers