Crown Currency Exchange latestFX company goes into administration

05 October 2010

Holiday money

Save Euros on a cheap WC from France

More than 13,000 people have been affected by the failure of travel money and money transfer provider Crown Currency Exchange. The company went into administration over the weekend and thousands have already contacted MCR, the administrator.

Thousands of holidaymakers, business travellers and people buying property abroad are all affected by the collapse of Crown Currency Exchange, with hundreds or thousands of pounds tied up with the defunct provider. 

Crown offered an FX service for customers who wanted to order or transfer sums of between £300 and £10,000, with the exchange rate fixed on the day of purchase, and delivered at a later date. 

Barclays customers protected

Barclays has announced that it has frozen its bank accounts with a £2 million credit balance in order to protect customers. The bank took this move following a meeting with Peter Benstead of Crown Currency Exchange. 

Refund difficulties 

As purchases were made via bank transfers, rather than on a credit or debit card, MCR, the administrator, believes that it will be harder for customers to get a refund (as they cannot make a Section 75 claim for credit card purchases or a claim under the Chargeback system for debit and credit card payments).

Crown Currency Exchange is understood to have been experiencing trading difficulties over the past 12 months, which were made worse by a further economic downturn and general problems in the travel market. MCR has said that as it stands, no currency orders due to be delivered from 4 October onwards, or deliveries due before this date that have not arrived, would be completed. 

MCR has stated that it will be contact anyone affected by the collapse of Crown in due course. The administrator has already received more than 5,000 emails and 2,000 phone calls in response to the news of Crown's collapse. To enable customers to contact the administrator in a more efficient manner it has set up a dedicated call centre number (0844 826 8659).  

If you've been affected by the collapse of Crown Currency, you are advised to keep an eye on the company's website for updates, or you can visit MCR's site. On Tuesday afternoon, MCR said that Crown Currency's call centres would also reopen shortly, and operators would be available to answer questions. The telephone number is 0800 612 7273.

See the Which? travel money and buying property abroad guides for more information on money transfers and currency options. 

pound coins

Which? Money when you need it

You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.

Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.

Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast

For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.