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"A zone of lawlessness at rates of" immoral dearness "" : the badociation UFC-Que Choisir announced this Tuesday, November 27 that she wore complaint against Western Union and MoneyGram, world leaders in international money transfers, to the public prosecutor, to "Deceptive marketing practices. " The consumer protection badociation criticizes the two American groups the opacity and the too high level of their tariffs, especially "Hidden exchange fees", which would amount to 110 million euros in 2017 out of an estimated total of 680 million euros of commissions related to money transfers from France. The volume of money transfers in France would be 19 billion euros, including 9 billion in the euro zone (area where fees are capped).
"For five of the eight major shipping destinations (Morocco, Algeria, Vietnam, Senegal, India), France is even the most expensive in Europe. For example, the average rates for a transfer from France to Morocco or from France to Vietnam are respectively 16% and 25% above the average, "says the UFC, which estimates" their average cost to 6.7% of the sum sent, or 11.40 euros for a shipment of 170 euros. "
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The UFC recognizes that both US companies are "Transparent on fee-for-service" on the other hand, "Neither Western Union nor MoneyGram can legibly inform their customers of foreign exchange charges. Yet they represent more than a quarter of the cost of all transactions (26%) " advance the study.
Alternatives exist, including Fintech startups such as WorldRemit or TransferWise, but they remain unknown to the traditional clientele of money transfer services.
Application for framing rates overseas
The badociation is surprised by the observed price differences, which can range from one to four depending on the service providers.
" All destinations combined and for an amount sent from 170 euros, a transfer of money by the bank channel costs 6.9% of the amount transferred. This price reaches 7.3% from a conventional money transfer company against 2.6% for the online equivalent. This billed service in the La Banque Postale network is billed 12.4% the amount sent. Finally, the rate of La Poste is 5% "Says the study.
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[Frais de transferts internationaux selon les prestataires utilisés. Crédits UFC Que Choisir]
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UFC denounces a "La Banque Postale's double game" which has its own transfer service at one of the lowest rates but which takes a large margin on that of Western Union carried out in a post office, while the populations concerned usually have low incomes and the bank fulfills a service mission bank inclusion public for which it receives state aid.
Beyond its complaint, the badociation asks the public authorities a certain number of measures. Especially the framing of rates for transfer operations to French territories that do not have the single currency (New Caledonia, French Polynesia, Wallis and Futuna). It also advocates the harmonization of consumer information before initiating a transfer of money, taking into account all costs, including foreign exchange. The UFC also raises the problem of banks refusing to open professional accounts to transfer companies approved by national and European supervisors, which hampers competition.
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