UK Watchdog Warns Of Price Fixing Among Money Transfers Firms

The UK’s consumer watchdog has accused three money transfer firms of price fixing.

The Financial Conduct Authority (FCA) alleged in a Wednesday (Jan. 25) news release that Dollar East, Hafiz Bros Travel & Money Transfer, and Small World Services fixed prices charged to Glasgow customers who wanted to send money to Pakistan.

As a result, the agency said, those consumers might have been overcharged, though it is unclear if any laws were broken. 

“It is the FCA’s view that, for a period in 2017, the 3 firms coordinated on the exchange rate offered to consumers for converting UK Pounds into Pakistan Rupees in transferring money to Pakistan,” the authority said.

Related: UK Fines Soccer Firms For Price Fixing

It added that the companies “fixed the level of a flat rate transaction fee charged to consumers when making money transfers from the U.K. to Pakistan via Small World’s services.” 

The FCA said its findings are “provisional” and may not lead to further enforcement, and were issued to notify the company the authority thinks they have infringed on competition law.

The authority’s findings come a little more than three months after the U.S. Consumer Financial Protection Bureau (CFPB) announced a $950,000 penalty against Choice Money Transfer, which merged with Small World in 2011.