FCA issues warning on misleading currency converter tools
19 July 2017 | 6497 views | 0
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.