Money Transfer abroad is a rip off.
Email sent to MP
Customers are charged twice
World Remit and Moneygram are examples
The first charge is made by giving less than the market exchange rate and the second charge is the charge made for the transaction.
For example sending money to the Philippines
The current market exchange rate was 70.0604 peso = £1 on the 23rd Oct 2013, the day I am quoting.
The money transfer amounts changes daily
For Example todays exchange rate 24th Oct is 69.7354 peso =£1
So the price of money transfers can change daily
But after charges for £200 World Remit would send 13,684.00 for £205.99 = 66.43 peso /pound and Moneygram 13527.93 for £209.95 =64.43peso /pound sterling.
Charges are £5.99 and £9.95 respectively
There may be scales of charges too.
For example I do know that World Remit charge £5.99 for amounts upto £250 which would reduce the overall cost slightly.
Also there may be advantages or disadvatages in how the money may be collected abroad.
Some can only be collected through their agencies as in Western Union who are even more expensive.
Some will only send money via a bank which can also charge for collection and the collection more complicated.
In the Philippines there are Money Exchange Shops which World Remit and Moneygram use.
I ask you to be concerned and stop this money transfer rip off.
You can see from my figures the amount per pound sterling the Money Transfer firms are charging for their services.
The system is totally unregulated.
Based on the daily exchange rate determined by the ?market, charges for money transfers abroad should be better regulated.