11 December 2017
visit www.solutions.lexisnexis.com

FCA issues warning on misleading currency converter tools

19 July 2017  |  6654 views  |  0 cash

The UK's Financial Conduct Authority (FCA) is again warning banks and other firms that provide currency conversion services that they face penalties for online converter tools which mislead customers on their rates.

The watchdog says that, despite previous warnings, some providers still have tools on their sites which convert currency at the interbank rate.

This, says a statement, may "give consumers the misleading impression that the rates shown are available to them [customers], rather than the materially inferior rate that they are likely to achieve".

Customers are often left unaware that they are being offered an inferior rate until after they have registered with the provider. "At that stage, consumers may be unlikely to shop around," says the FCA.

After an earlier warning on the use of the interbank rate, several firms have cleaned up their act, says the FCA, yet "a number" of providers are still potentially falling foul of the rules.

"Accordingly, we are actively considering further investigations and action in this area. In doing so we will have particular regard to any firms which do not take appropriate steps in light of today’s announcement," warns the regulator.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.atos.netvisit http://info.nice.com

Who is commenting?

Top topics

Most viewed Most shared
Revolut lets customers buy Bitcoin, Litecoin and EthereumRevolut lets customers buy Bitcoin, Liteco...
18353 views comments | 26 tweets | 22 linkedin
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11260 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
7505 views comments | 14 tweets | 21 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
6567 views comments | 8 tweets | 17 linkedin
Barclays, First Direct and Nationwide join FCA sandbox cohortBarclays, First Direct and Nationwide join...
5976 views comments | 5 tweets | 12 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job