We've teamed up with personal finance expert, Kia Commodore to help give your money a kick up the backside so you can go ahead and sleep. “Lazy Money” is what...
We know banks and other providers can be sneaky, and will continue to be for as long they are allowed to. To stop it, we need to make it illegal for them to deceive customers.
The first step is to make your friends and family aware of the issue. The second, is to help log a collective complaint against big (sneaky) banks.
And call it out on social media, by adding the hashtag #banksaresneaky.
Check whether your bank or provider is doing something similar. And spread the word on social media: tweet the screengrab of the rate they provided you for your international transfer vs the mid-market rate You can check what’s the real exchange rate on a reliable third party (XE, Google or even Transferwise).
Don’t forget to tag the bank and Wise. And add #banksaresneaky to your post if you can fit the characters in.
Make a formal complaint and ask your bank to put things right
If you really want banks to stop hiding their fees from you, ask them to be more transparent. You can usually find the right place to log a complaint in your bank quite easily in their Contacts or Complaints page.
We’ve written a template that you can use to make things easier:
Dear Sir/ Madam,
I am writing to formally complain with regards to the pricing that was displayed on my recent international transaction from [currency you’re sending from] to [currency you’re sending to] on [date].
Upon checking, it is clear that there was a charge embedded in the exchange rate - as the mid market rate on the day was not the rate applied to the transaction. According to the FCA, this ‘exchange rate margin’ should be considered a charge and disclosed to me prior to the initiation of a transaction to help me compare providers and understand what I am paying.
Furthermore, new regulations (the Cross Border Payments Regulation II) have come into force in the UK. These regulations require that total cost is disclosed to your customers upfront, including the exchange rate margin.
As a result, I believe your pricing display is deliberately misleading to consumers like myself.
I hereby request that it is made clear to consumers such as myself the difference between the mid market rate and the rate you apply, as well as any upfront fees, displayed as either a percentage charge or as one single amount e.g £3 before we make a transaction online or on mobile. I do not believe the costs were clearly presented, as intended by new legislation and the regulator, and I was not offered a fair opportunity to shop around.
To take things further you can also complain to the Financial Ombudsman Service, after you’ve received a response from your bank. Here’s how you can do it.
To find out more, and join the fight, click here.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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