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Crown Currency In Trouble?

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Holidaymakers fear for travel money

(UKPA) – 2 hours ago

Swathes of holidaymakers fear they have been left without any travel money amid concerns over the future of one of the UK's biggest foreign exchange websites.

Crown Currency Exchange (CCE) has seen its bank accounts frozen by Barclays after the company's directors reportedly told the bank it was on the brink of collapse.

It is understood the banking giant suspended CCE's accounts, barring it from withdrawing or transmitting any money to customers, under its legal obligations to protect funds on behalf of its creditors.

Customers have not been able to contact CCE since the problem arose on Saturday, with all customer service numbers ringing out.

CCE, based in Hayle, Cornwall, allows customers to pre-order foreign currency of between £300 to £10,000 at the prices up to a year in advance

There is no message on the company's website, except a notice telling new customers that it is experiencing a "technical problem" with its ordering system, which re-directs visitors to its supplier International Currency Exchange.

An administrator has been lined up should CCE go bust, according to a report in The Sunday Telegraph, but it is not clear how much money is owed to customers or whether they will receive their cash in full.

Worried messages were flooding in from customers on the moneysavingexpert.com forum.

One message from a customer called Annie said: "I have holiday money due on Tuesday from Crown Currency but just read on another forum that they have been suspended by Barclays.

"Their phone number is now dead, so does anyone know where do I go from here I would have expected an email telling me about the situation but nothing received."

Copyright © 2010 The Press Association. All rights reserved.

http://www.google.com/hostednews/ukpress/article/ALeqM5hnMIgxl9tm4K3Azoatr9GgxEclyg?docId=N0057091286106625260A

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allows customers to pre-order foreign currency of between £300 to £10,000 at the prices up to a year in advance

I can't beleive anyone would be stupid enough to use such a scheme.

Seriously, how dumb were these people?

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http://www.thedibb.co.uk/forums/archive/index.php/t-178856.html

9 Nov 07, 01:11 PM

They are not regulated by the FSA as far as I am aware and they would probably just go into administration leaving those who had purchased currency losing the vast majority of their holiday money.

I am amazed that they arent regulated , or in fact that they dont have to be?

Can anyone confirm if this is accurate?

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I can't beleive anyone would be stupid enough to use such a scheme.

Seriously, how dumb were these people?

Me for one. What is dumb about it? I just had some Euros delivered last Saturday at a rate much better than anywhere on the high street or Travelex. I found them an excellent company to deal with and will definitely use them again.

Not being able to get through to a customer services line on a Sunday doesn't mean anything and is probably a bit soon to be panicking.

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Me for one. What is dumb about it? I just had some Euros delivered last Saturday at a rate much better than anywhere on the high street or Travelex. I found them an excellent company to deal with and will definitely use them again.

Not being able to get through to a customer services line on a Sunday doesn't mean anything and is probably a bit soon to be panicking.

Are they regulated by the FSA?

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The footer on their website says "Crown Holdings (London) Ltd. is registered with the Financial Services Authority under the Payment Service Regulations 2009 (Ref: 503404) for the Provision of Payment Services. "

I'm not sure it is of much use though. There is a huge thread on MSE and there are a lot of upset people who have lot money with this company. Interestingly, the MSE crowd are comparing it to a Ponzi scheme - attract new clients with market beating rates using the money from previous clients.

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I used them with no problem back in January to buy dollars, but over the last couple of months they started spamming "special rates"...trying to scoop up cash no doubt, and a bit suspicious after not having had a single advertising email out of them for over 6 months

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I used them a year ago after having checked their excellent (at the time) reputation on the interweb. Considering this,I shall be more careful in future.

Edited by Si1

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CCE, based in Hayle, Cornwall, allows customers to pre-order foreign currency of between £300 to £10,000 at the prices up to a year in advanced

Don't know the details, but these have been very volatile forex markets. Not surprised really.

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Interestingly, the MSE crowd are comparing it to a Ponzi scheme - attract new clients with market beating rates using the money from previous clients.

I agree. Somewhere between Ponzi and a massive currency bet.

The only place they could be funding their running costs from would be their clients money.

If the pound rose enough they'd make a killin on the Forex split, if not they would certainly go bust owing millions.

I don't know if any laws have been broken, but there should be laws against this sort of thing.

It's simply fraud.

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Really no need to use cowboy companies like this. You can use currencies direct or similar with no risk to your own cash. The law should be changed so people are aware of the difference between currency companies. No harm in them operating if the customers know of the risk they are taking.

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Really no need to use cowboy companies like this. You can use currencies direct or similar with no risk to your own cash. The law should be changed so people are aware of the difference between currency companies. No harm in them operating if the customers know of the risk they are taking.

I've used them several times, the last time was a month ago and never considered them a cowboy company. I found nothing but good reviews before using them. Seems like you just never know.

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I've used them several times, the last time was a month ago and never considered them a cowboy company. I found nothing but good reviews before using them. Seems like you just never know.

Did you know your money was at risk? It seems strange anyone would use a company like this when you can get the same rates and services with a company with no risk at all.

Been reading the forums and really feel bad for some of the people caught up in this. It seems to be really hard to tell the difference between a proper currencies firm with separate client accounts and companies like this one.

I am sure if people were aware of the risk, and the zero risk alternative no one would use them in a million years.

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Fu(k...I ordered £300 worth of Euros due to be delivered tomorrow...I hope it was in the last load to be sent out, otherwise I'm not going to Sorrento in two weeks time. Used them loads in the past, the only people who seemed to give a decent rate of exchange...always a risk though given you are paying in advance. Still...fu(K!

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Did you know your money was at risk? It seems strange anyone would use a company like this when you can get the same rates and services with a company with no risk at all.

really? where?

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Did you know your money was at risk? It seems strange anyone would use a company like this when you can get the same rates and services with a company with no risk at all.

Been reading the forums and really feel bad for some of the people caught up in this. It seems to be really hard to tell the difference between a proper currencies firm with separate client accounts and companies like this one.

I am sure if people were aware of the risk, and the zero risk alternative no one would use them in a million years.

The difference with Crown seems to be that you could lock in a rate a long way in advance. This doesn't necessarily mean they were speculating / Ponziing given that with sufficient scale they could lay off the risk with futures contracts.

May have been, though: there are a lot of these little schemes coming to light. Couple of friends of mine were caught in a pseudo-factoring scheme... the 12% per month (!) return should have made them a bit suspicious, but it was all a big secret and the guy running it said it was invite only and that their money would turn to pixie dust if they talked to anyone about the scheme etc etc.

AB

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May have been, though: there are a lot of these little schemes coming to light. Couple of friends of mine were caught in a pseudo-factoring scheme... the 12% per month (!) return should have made them a bit suspicious, but it was all a big secret and the guy running it said it was invite only and that their money would turn to pixie dust if they talked to anyone about the scheme etc etc.

AB

There was one of those knocking about at one of the studios in London .. People lost thousands and the guy who was organising it for people had to disappear .. While they were making 10% a month anyone who pointed out it was a scam was shouted down as a know nothing moron who didn't understand "Far east rates of return" ..

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It was on the news tonight, a bloke had travelled down from Birmingham trying to get his US$1,500 but the office was closed (well it was Sunday), he intends to be there tomorrow when they open. If I worked there I don't think I'd rush to be first in.

Also said that Barclays had frozen their accounts.

Not looking good.

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The difference with Crown seems to be that you could lock in a rate a long way in advance. This doesn't necessarily mean they were speculating / Ponziing given that with sufficient scale they could lay off the risk with futures contracts.

May have been, though: there are a lot of these little schemes coming to light. Couple of friends of mine were caught in a pseudo-factoring scheme... the 12% per month (!) return should have made them a bit suspicious, but it was all a big secret and the guy running it said it was invite only and that their money would turn to pixie dust if they talked to anyone about the scheme etc etc.

AB

There was one of those knocking about at one of the studios in London .. People lost thousands and the guy who was organising it for people had to disappear .. While they were making 10% a month anyone who pointed out it was a scam was shouted down as a know nothing moron who didn't understand "Far east rates of return" ..

When I worked in the City somebody tried to get me to invest in invitation-only US bond securitisation. I said no thanks.

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