Finance: Foreign Exchange

House of Lords written question – answered at on 12 October 2011.

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Photo of Lord Dykes Lord Dykes Liberal Democrat

To ask Her Majesty's Government whether they have plans to intervene to prevent currency exchange bureaux advertising zero commissions while charging exchange rates with margins in excess of 25 per cent.

Photo of Baroness Wilcox Baroness Wilcox The Parliamentary Under-Secretary of State for Business, Innovation and Skills

The Government currently have no plans to intervene to prevent currency exchange bureaux advertising zero commissions. We have noted the super-complaint lodged by Consumer Focus with the Office of Fair Trading (OFT), which among other things covers zero commission. In due course we will consider the OFT's response, which is due later this year.

The Price Indications (Bureaux de Change) (No 2) Regulations 1992 set rules for exchange rate indications by bureaux de change. Indications should be clear, accurate, unambiguous and easily identifiable as applying to the currency in question. Our advice to consumers is that this is a competitive market and they should shop around to find the best deal for them, whether a business charges a commission or chooses to offer a higher rate of exchange instead. Bureaux de change, like other businesses dealing with consumers, are subject to the Consumer Protection from Unfair Trading Regulations 2008, which make it a criminal offence to mislead consumers as to the price of services or goods.

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