Crown Currency concerns

[UKDEB]

What are they saying?

 

[wayneg]

Missed it, busy at work, wating for it to appear on iPlayer http://www.bbc.co.uk/programmes/b006qjnv

 

[igk]

Nothing new really. Just clarifying what has already been posted on various forums. The did mention Barclays had frozen their account I think, but that's tha same as what people had already been told. They interviewed a customer whose money failed to arrive yesterday, and then someone from the Independent, but again the Independent person (travel editor IIRC) didn't really say anything useful - they spent half the time suggesting where you might go for a good deal on currency.

 

[cazzie]

Barclays bank have frozen their assets and the rest was more or less about how to get your currency, I really feel for anyone waiting for their money.

 

[igk]

Now available to listen to on Wayne's link above

 

[UKDEB]

I've listened to it now. BBC Radio 4 is reporting the statement made on ICE's website and saying that "Barclays has issued a similar statement". To whom? Surely it isn't taking the spurious post over on MSE as evidence of that? Simon Calder claims that companies engaging in these transactions are betting on future exchange rates and that movements against them can wipe out profits overnight. That's ludicrous. Why would they take that risk? They fix rates using forward contracts which is why they're able to offer such seemingly superior rates.

Freezing a company's assets is certainly a pre-curser to a bank appointing a receiver, so I'm guessing there's a chance that may happen on Monday.

 

[igk]

Simon Calder claims that companies engaging in these transactions are betting on future exchange rates and that movements against them can wipe out profits overnight. That's ludicrous. Why would they take that risk? They fix rates using forward contracts which is why they're able to offer such seemingly superior rates.

Freezing a company's assets is certainly a pre-curser to a bank appointing a receiver, so I'm guessing there's a chance that may happen on Monday.

The reality is we have no idea at all what they were doing. However one of the things that has rang big alarm bells for me in the past is that their seemingly superior rates were so good that it seemed very unlikely they could have been achieved by forward contracts. Add that to the fact that they were taking their customers' money up to several months in advance and allegedly putting it into their own account, not a segregated one (according to the Investors Chronicle article I have linked to a couple of times in the past), they could have done anything they liked with it.

 

[Disneynutinlondon]

So sorry to everyone who has sent them their hard earned savings and not received their holiday money yet. I used them in the summer and their service was superb. Tons of good luck to all who have money tied up with them, heres oping for some good news on Monday.

 

[UKDEB]

Forward rates are often significantly higher than spot. Contrary to popular misconception, they're nothing to do with a prediction of future rates: they're a simple mathematical equation based on spot with an adjustment for the interest (not exchange) rate differential between the two currencies.

 

[igk]

Forward rates are often significantly higher than spot. Contrary to popular misconception, they're nothing to do with a prediction of future rates: they're a simple mathematical equation based on spot with an adjustment for the interest (not exchange) rate differential between the two currencies.

I know how forward rates are calculated - I used to trade currencies for a living. A few months ago one of their rates looked so out of line I pointed it out to another FX professional who was as mystified as me.

 

[UKDEB]

igk, I have no truck with you and if in your professional opinion rates were offered that appeared to be seriously out of line, then maybe that will turn out to be significant in this particular case.

I've got no interest in defending CCE per se, but until we know something concrete we're all making assumptions. My assumptions may be a little different to the general consensus, and whilst I wouldn't dream of claiming expert status, this subject is as close as I could ever hope to get to that distinction. This is what I did for 28 years - forex, forwards, derivatives, corporate banking, insolvencies, turnarounds, yadda, yadda, yadda. For what it's worth, it does appear that I got it right when I suggested that "as we speak, it seems unlikely that this company is in receivership or administration." For the avoidance of doubt, I'll also reiterate that it may only be a matter of time.

 

[Fraggles]

Hi all I went down to hayle to their office it was all shut up this was yesterday and no one has seen anybody although I went into the wine bar next door and was told that 14 of them were in on Thursday for a meal!!!!!!! We ordered our euro on the 24th august for delivery on the 22nd of October so imagine our joy and surprise when the postman gave us our euro in full this morning 3 weeks early couldn't believe it so don't give up we had and then this ours were cancelled contracts don't know if this makes any difference or the fact that the only other person on the money expert site to receive theirs were from Plymouth ???? South west people ????? On the other forum someone had a reply from a employee of cce and she said she was sent home on Thursday ??? So maybe she wasn't one of the fourteen of them eating in the wine bar on Thursday??? I really really hope that other people get their money like we did fingers crossed for you all x

 

[UKDEB]

Thanks for taking the time to post, Fraggles.

 

[MorningGlory]

What a horrible situation. Hopefully everyone will get their money. There has been some encouraging news (like fraggles post above) so don't despair yet.

Fingers crossed for you all.

 

[wildwood]

I am from plymouth and not recived any money ( booked on wednesday afternoon at 5.15 for delivery on the 22nd Oct) I have just told myself that I will not be getting my money and with the help of my fantastic mum and dad we will still have $ words can not explain the relief I felt when they sadi they would help . I hope we all get our money back one way or another and the people who our going soon you can still enjoy your hoilday I am hoping that as soon as I land in florida I will get that tingling feeling again because at the moment the magic is diffently fading .

Big hugs to all invloved lets hope we all get the right outcome .

 

[igk]

The Moneybox report is now on the BBC News's Moneybox site:
http://news.bbc.co.uk/1/hi/programmes/moneybox/9052113.stm

Currency exchange site troubles

One of Britain's web-based retail currency providers is in difficulties, leaving customers wondering if they'll get the holiday cash they ordered.

Money Box has learned that Crown Currency Exchange has had its bank account frozen by Barclays to protect its creditors. Unlike most retail foreign currency dealers, Crown allowed customers to buy their currency up to a year in advance.

Money Box hears from one listener, Mark from Cumbria, who's still waiting for the holiday Euros he ordered from Crown Currency Exchange. The programme also speaks to Simon Calder, travel editor of the Independent.

Related information:

Crown Currency Exchange Statement

 

[kristieuk]

I am so sorry for everyone that our worst fears seem to be coming true I feel awful that many people here have only used Crown based on recommendations from these boards (including from me). It's a sign of the times that companies are failing (big banks anyone?), but reading the MSE forum, there is a lot of 'if it was too good to be true, it was' and assuming the company was run by fraudsters who have committed criminal offences. I don't know if that is the case or not, but certainly we have used them for years, and they were a well established company that until now have fulfilled their obligations. That is the basis upon which I used and recommended them. Wayne has been a great ambassador of making sure everyone here was aware of the risk, and we certainly were. We only used them to top up our spending money (we have lost the £300 of change we save in a money tin, which is not the end of the world).

I am so sorry for everyone that has been affected by this, and I truly hope everyone manages to make alternative money arrangements to enable them to have the wonderful trip they have planned. I understand that it does feel like a terrible catastrophe, but it is just money. You can replace that in a way that you cannot with health. I know it is a bit weird, but I am telling myself it is though we have 'paid' £300 to keep us all healthy enough to go on holiday in just 3 and bit weeks

Lots of to everyone, even those not affected who have been sensitive enough not to say 'i told you so'.

 

[MorningGlory]

I really really doubt this company is operated by fraudsters, and that this has been their whole intention. This company has been going for far too long for that to be the case. Not that i'm saying that it won't come out in the wash that there has been some kind of fraud, but I think it unlikely and if it is, it is something that has just occurred recently.

I never used them simply because I didn't like the idea of giving my money to a company and not getting anything back for months. But I never had any inkling that they were anything other than a sound company.

 

[Scarboro-red]

I have just phoned Devon and Cornwall police and they have opened a log for this matter under the advice of the FSA , if anyone wants to call them the number is 08452 777444 .

The WPC I spoke to said that anyone affected should call and give their details e.g Full name, address, contract date , amount etc

They said they would start investigation on Monday and get back to me. They have received hundreds of calls already and as above they want to hear from anyone affected.

 

[wayneg]

On the Telegraph website http://www.telegraph.co.uk/finance/...without-cash-as-currency-company-falters.html