UK’s foreign exchange delivery broker Crown Currency Exchange (what is it with failed brokers and the name Crown??) has recently collapsed leaving more than 13,000 without their funds. Total lost sum may be as high as 20 million pounds. There are dozens of such internet services available with Travelex and Oz Forex being the largest.
The business, based in Hayle in Cornwall, was established by husband and wife Peter and Susan Benstead five years ago. CCE allowed individuals and business customers to pre-order foreign exchange at a set price up to a year in advance, with amounts of between £300 and £10,000 available.
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But its bank accounts were frozen by Barclays at the weekend, barring it from withdrawing or transmitting any money to customers. And administrators from MCR and SPW were appointed on Monday.
They said the business had processed hundreds of millions of pounds worth of foreign currency in the last five years, providing travel money in 80 different currencies, as well as travellers’ cheques and money transfers. “Like many operators in the travel sector, it has experienced a difficult trading environment during the course of the past 12 months which has been exacerbated by a further downturn and general tightening of the travel market,” said administrator Paul Clark, of MCR.