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  • FIRST POST
    • MSE Archna
    • By MSE Archna 4th Oct 10, 3:57 PM
    • 1,874Posts
    • 6,140Thanks
    MSE Archna
    Crown Currency Exchange goes into administration
    • #1
    • 4th Oct 10, 3:57 PM
    Crown Currency Exchange goes into administration 4th Oct 10 at 3:57 PM
    This is the discussion thread for the following MSE News Story:

    "Over 13,000 overseas cash traders and holidaymakers have been left fearing for their money after a major currency firm went into administration today ..."



    This thread is to discuss the news story, given the information we now have from the administrators. There is a separate thread on Crown that started last week.



    Just an update

    Based on suggestions in the thread below we are in the process of hastily looking at hiring an insolvency practioner to write a report and investigate the legal routes available for people to get their money back - based on what's been said in the various threads - more info later

    Plus we are setting up a specific CCE board if people think that would be helpful
    Last edited by MSE Martin; 05-10-2010 at 11:18 AM.
    Report inappropriate posts: forumteam@moneysavingexpert.com




Page 1
  • adam2484
    • #2
    • 4th Oct 10, 4:30 PM
    • #2
    • 4th Oct 10, 4:30 PM
    'bout time you posted something...
    • MSE Martin
    • By MSE Martin 4th Oct 10, 4:39 PM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    • #3
    • 4th Oct 10, 4:39 PM
    • #3
    • 4th Oct 10, 4:39 PM
    'bout time you posted something...
    Originally posted by adam2484
    Sorry for the time, I've been out of contact at tory party conference debating financial education (was at labour last week - its not a polemic thing) and meanwhile the team have been trying to find out exactly what is happening, what the position is and what can be done before doing a news story (nearly half my editorial team is off sick with a flu type bug so we're really up against it on resources)

    We didnt want to publish without a quote from me in there as in the circumstances that would've been inapprorpriate.
    Last edited by MSE Martin; 04-10-2010 at 5:06 PM.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
    • phileb
    • By phileb 4th Oct 10, 4:46 PM
    • 13 Posts
    • 3 Thanks
    phileb
    • #4
    • 4th Oct 10, 4:46 PM
    Crown currency
    • #4
    • 4th Oct 10, 4:46 PM
    Will you MSE, be spear heading a campaign to regulate such firms in a proper manner leading to compensation for its customers ?

    I understand CCE were registered with the FSA - not authorised - and so the FSA do not .

    However, if they were exceeding the finanical limits - ar not the FSA responsible for not regualting correctly , and liable ??
    • phileb
    • By phileb 4th Oct 10, 4:50 PM
    • 13 Posts
    • 3 Thanks
    phileb
    • #5
    • 4th Oct 10, 4:50 PM
    • #5
    • 4th Oct 10, 4:50 PM
    should FSA do not want to know.
    • MSE Martin
    • By MSE Martin 4th Oct 10, 4:52 PM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    • #6
    • 4th Oct 10, 4:52 PM
    • #6
    • 4th Oct 10, 4:52 PM
    Will you MSE, be spear heading a campaign to regulate such firms in a proper manner leading to compensation for its customers ?

    I understand CCE were registered with the FSA - not authorised - and so the FSA do not .

    However, if they were exceeding the finanical limits - ar not the FSA responsible for not regualting correctly , and liable ??
    Originally posted by phileb
    It's something we've discussed before - both here and the companies who transfer money abroad which can be even larger amounts - I must admit Im not quite sure how to kick a campaign like this up (not the same as public action ones or financial education which are very mainstream).

    Certainly it will be one of my suggestions to spearhead in our new 50 words manifesto which fingers cross DC & NC and their teams have provisionally said they'll look at (we'll be asking for suggestions soon). The last one did well at getting the issue under politicians noses and even had a treasury select investigation launched.

    I am open to suggestions on this.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
    • Reaper
    • By Reaper 4th Oct 10, 4:54 PM
    • 6,481 Posts
    • 4,835 Thanks
    Reaper
    • #7
    • 4th Oct 10, 4:54 PM
    • #7
    • 4th Oct 10, 4:54 PM
    Firstly I am sure you will get people upset with MSE for recommending them, so I would like to give my support to you as I really don't see what you could have done differently.

    Secondly, companies need to ring fence the customer's money. If necessary on a voluntary basis to begin with. If any do this already then please can you mark these ones in the tool results so people can make an informed choice.
    • eglons
    • By eglons 4th Oct 10, 5:19 PM
    • 55 Posts
    • 5 Thanks
    eglons
    • #8
    • 4th Oct 10, 5:19 PM
    • #8
    • 4th Oct 10, 5:19 PM
    I'd have thought it was in the industry itselves interest to sort something out. My opinion is that this could wipe out a number of similar companies as the risk of losing lots of money with no recourse for the sake of saving a few 's is not one most sane people will now take.

    Can you also explain what use "registration with FSA" is if it doesn't actually protect anything, seems pointless at worst or just down right misleading?
    • maths max
    • By maths max 4th Oct 10, 5:21 PM
    • 12 Posts
    • 9 Thanks
    maths max
    • #9
    • 4th Oct 10, 5:21 PM
    Crown Currency Exchange
    • #9
    • 4th Oct 10, 5:21 PM
    I am absolutely gutted! I ordered 1000 in dollars 12 days ago after using moneysavingexpert advice! Don't know where I'll get the money for my holiday to America in 3 weeks! Obviously I don't blame this website as we all knew the risks with currency exchange companies but all the same I'm still devastated!
  • royzee28
    Never again will I use any of the advice on this site!!! I am getting married this coming weekend and have lost 500, thank goodness it wasn't any more!!!!!

    I got stung when the Icelandic Banks were in trouble and have been taken for a mug again!!

    This is an absolute disgrace that there is no protection!!! Correct me if I'm wrong but were there any warnings given on this site that this was the case!!!

    I Don't think so!!!!

    PS! I'm not blaming the site, all I'm saying is I will not be using it, I know it was my own fault and that's that!!!

    The directors of such companies need to be prosecuted as I'm pretty sure the have known for quite some time that this was on the cards!!!

    Sorry for the rant but I'm VERY Angry!!!!
    Last edited by royzee28; 04-10-2010 at 5:36 PM.
    • MSE Martin
    • By MSE Martin 4th Oct 10, 5:45 PM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    Never again will I use any of the advice on this site!!! I am getting married this coming weekend and have lost 500, thank goodness it wasn't any more!!!!!

    I got stung when the Icelandic Banks were in trouble and have been taken for a mug again!!

    This is an absolute disgrace that there is no protection!!! Correct me if I'm wrong but were there any warnings given on this site that this was the case!!!

    I Don't think so!!!!
    Originally posted by royzee28
    I'm very sorry to hear about your 500 - it is an awful scenario - and I understand your anger.

    Remember the lack of protection applies to every single foreign currency provider out there not just Crown.

    Crown has been a best-buy pick for a number of years, not just here but in virtually every paper and publicised in Which? Money, amongst others.

    And frankly as with the Icelandic banks had you used another site or source that does detailed research for your info, I doubt you'd have got a different answer.

    There are warnings in the foreign currency transfer article, but less so in the travel money ones (as people always feed back "too much info just tell me the rates" ) though we will look at making them bigger.

    Yet we have always in very large print said we believe the best option is to use cheap travel spending cards - not cheap foreign currency - and that has always been highly prominent on the TMM and cheap travel money tools - with a suggestion to get minimum cash out.

    I can see why you feel usinig the TMM is to blame, but I'm not quite sure what we could've done differently, to start taking judgement on companies solvency simply isn't possible - if we miss companies out of our tables we are berated for excluding them.

    There is a real issue here over the lack of protection offered to customers of any foreign exchange company and the lack of FSA regulation of the industyr.

    Yet I'm sure this is cold comfort to you and anyone else facing losing money.

    Sadly companies go bust sometimes and people lose money, what we need is a decent protection regime but we dont have that - any company can go under - and we don't know they're struggling until its too late (and even if we did - which we didnt in this case - if we tell people to watch out you risk causing them to go bust when that may not have happened).

    Of course we could simply close down the tool and say "go to the post office" but that diminishes the competitiveness of the market.

    Having said all that, I am, and my team are horrified to hear of this - and very sorry about the impact this has on those people who are impacted. It is our hope some cash will come back from the administrators - but that is likely to be a long process.

    Martin
    Last edited by MSE Guy; 05-10-2010 at 9:36 AM.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
    • MSE Martin
    • By MSE Martin 4th Oct 10, 5:49 PM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    Signing off now. Hi folks I have been trying to monitor this thread to respond. Im signing off now - as need to do other work. Either me or one of the team will come back on tomorrow.

    Please feed us any other info that may be useful to others too.

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • zoomer21
    Directors brought to task
    Never again will I use any of the advice on this site!!! I am getting married this coming weekend and have lost 500, thank goodness it wasn't any more!!!!!

    I got stung when the Icelandic Banks were in trouble and have been taken for a mug again!!

    This is an absolute disgrace that there is no protection!!! Correct me if I'm wrong but were there any warnings given on this site that this was the case!!!

    I Don't think so!!!!

    PS! I'm not blaming the site, all I'm saying is I will not be using it, I know it was my own fault and that's that!!!

    The directors of such companies need to be prosecuted as I'm pretty sure the have known for quite some time that this was on the cards!!!

    Sorry for the rant but I'm VERY Angry!!!!
    Originally posted by royzee28

    I agree the Directors should be taken to task somewhat like the proceeds of crime act where they can confiscate property etc if it is purchased form the proceeds of criminal activity.

    His houses should be repossesed and sold. I know they are a LTD company but it does seem from previous posts it pays him well enough to own multiple properties.
    Last edited by zoomer21; 04-10-2010 at 5:50 PM. Reason: spelling mistake
  • scroogeboy
    Buyers Beware!
    I feel very sorry for people who may have lost large sums of money

    Unfortunately (or fortunately) we live in a country where many businesses are very lightly regulated and when money disappears whether through bad luck, poor judgement or fraud there will be no follow through by the authorities

    If there is tighter regulation then the cost of the transactions will rise and probably for all providers. Probably to the point where the cheapest providers will be a similar cost to the Post Office now

    And there are other areas where there are potential problems - like prepaid Mastercards for example

    Unfortunately there is a good reason why these low cost providers are low cost - and it's because there's a bigger risk

    But - to be blunt - I have to say that it isn't fair for the general public to have contribute to losses made by people who want a few pounds off a holiday or want to avoid using the big banks for transferring large quantities of cash overseas
    • poppy10
    • By poppy10 4th Oct 10, 6:10 PM
    • 6,164 Posts
    • 7,463 Thanks
    poppy10
    Never again will I use any of the advice on this site!!!

    Correct me if I'm wrong but were there any warnings given on this site that this was the case!!!
    Originally posted by royzee28
    You might want to read the information given at the bottom of every page on MSE:

    This website is based on journalistic research. It does not constitute financial advice. Any information should be considered in regard to specific circumstances. All tips are followed at your own risk and should be followed up with your own research.

    The site gives tips and information, not regulated financial advice. Crown Currency never received an MSE "stamp of approval" nor did MSE ever claim in any way that they had investigated the financial stability of the company. MSE simply posts, like most newspapers, a comparison of the best rates available; just as with savings rates, it's up to you to do your own research and decide whether you trust the company enough to justify the potential risk involved in handing over your own hard-earned money.
    I could hardly sue the newspapers who put Icesave top of their "Best Buy" tables when it subsequently collapsed with ten grand of my money (i got it back eventually); it was incumbent on me to do my own research and seek professional advice if necessary.
  • olisheep
    Crown Currency
    Evening

    I have just had the hard job of telling my mum that she has lost 1000. She placed an order with crown currency for delievery in Nov 10. This was in USD for the spending money for a holiday of a life time in Florida, with my Husband, My Duaghter 3.5 years old, My dad and myself. Now she is not abel to go. She does not have any more money to use as savings. Not only do they stand to lose a 1000 but also half of the holiday money as well. This is probably all in all 3000. That is a lot for my mum and dad.

    To make matters worse, My mum has sent an e-mail to the address on this website and crown currency website and it keeps bouncing back. How the hell is she supposed to claim what is hers, if she is not able to contact anyone? I am raging.

    How the bloody hell do companies get away with this. I work as an Accountant and I know for a fact that Crown would have known for months that it was in trouble. Instead they keep taking people's hard earned money.

    I am sickend at this. I am prepared to fight tooth and nail to make sure that my parents get what rightfully belongs to them.

    Olisheep
    • davidlizard
    • By davidlizard 4th Oct 10, 6:20 PM
    • 1,539 Posts
    • 1,607 Thanks
    davidlizard
    You might want to read the information given at the bottom of every page on MSE:

    This website is based on journalistic research. It does not constitute financial advice. Any information should be considered in regard to specific circumstances. All tips are followed at your own risk and should be followed up with your own research.

    The site gives tips and information, not regulated financial advice. Crown Currency never received an MSE "stamp of approval" nor did MSE ever claim in any way that they had investigated the financial stability of the company. MSE simply posts, like most newspapers, a comparison of the best rates available; just as with savings rates, it's up to you to do your own research and decide whether you trust the company enough to justify the potential risk involved in handing over your own hard-earned money.
    I could hardly sue the newspapers who put Icesave top of their "Best Buy" tables when it subsequently collapsed with ten grand of my money (i got it back eventually); it was incumbent on me to do my own research and seek professional advice if necessary.
    Originally posted by poppy10
    Also, for the Icelandic Banks, Martin Lewis made it very clear in the savings guide at the time that although the deposits in the Icelandic banks were protected, they were protected under some Icelandic scheme - he then went on to state that if the banks did fold, the process for regaining lost money could become very messy. This warning was certainly enough to provide me (and countless others here) to put their ISAs somewhere that paid a couple of tenths of a percent less but were protected by the more clearcut FSCS.
    • poppy10
    • By poppy10 4th Oct 10, 6:20 PM
    • 6,164 Posts
    • 7,463 Thanks
    poppy10
    I agree the Directors should be taken to task somewhat like the proceeds of crime act where they can confiscate property etc if it is purchased form the proceeds of criminal activity.

    His houses should be repossesed and sold. I know they are a LTD company but it does seem from previous posts it pays him well enough to own multiple properties.
    Originally posted by zoomer21
    There's been no suggestion that there was any criminal activity or fraud here, either from Barclays, the administrators, or from the widespread media coverage. Like a lot of companies these days, it ran into financial problems and sank. There may well be a case that the management were incompetent or greedy, but that's not a criminal offence. Being a limited company, it's unlikely that any of the owners or directors will face any financial penalty from the collapse of the company. Might sound unfair but that's the way it is.
  • Kungfuchoirboy
    this is the worst kind of competition to win....but I'm moving to America with my wife and in several lumps we were waiting for over 30k of our life savings...we had used Crown before enough to feel confident to move to bigger chunks and given the 5% better rates it made sense.....my wife and I have spent the day completely numb.......lets all keep our fingers crossed. Please do contact or post the address of any groups that are forming....I plan to be reading MSE on the hour every hour.....hope others are ok out there.

    by the way - the large amounts we orderered were directly triggered by emails about 'cancelled contracts' which had improved rates to the regular site - we would love to know Martin or any financial/criminal lawyer if you're reading this later, do we have recourse as the inferrence was that this was money they possessed that had been cancelled by others......

    thanks for reading
    Last edited by Kungfuchoirboy; 04-10-2010 at 6:28 PM. Reason: additinal comment
  • royzee28
    If you read my post as it was written I quite clearly said that I did not blame this site, I AM the one that made the decisions and I have to stick by them!

    Buyer Beware

    I wish I had read this article though, written almost a month ago:- http://www.investorschronicle.co.uk/Columnists/NoFreeLunch/article/20090909/0873f056-9d2e-11de-b65c-0015171400aa/When-segregation-is-good.jsp
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