 Poster: A snowHead
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Used these two or three times in the past with no problems. Was expecting £1200 of euros to be delivered
later this month but am absolutely gutted to hear that they have gone bust - see the following link:
http://www.telegraph.co.uk/travel/travelnews/8039164/Tourists-left-without-cash-as-currency-company-falters.html
Payment to Crown was made by bank transfer - to avoid hefty Visa charges. Unable to contact Crown - nothing happens when you dial their freefone number - so I've just rang the FSA. They advise that although Crown's Website says that they are bound by the Payment Services Regulations 2009, these regs do not in fact cover foreign exchange transactions. Fraudulent and misleading b******* or what?
So it looks like we have kissed goodbye to quite a chunk of this winter's ski budget. To say I am upset is putting it mildly.....
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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So sorry to hear about that. I know this is no comfort to you but for other snowheads, try this website. It compares deals but also one can sort of assess the risk by checking out the individual companies http://travelmoney.moneysavingexpert.com/.
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mountainaddict, gutted to here it mate.
I'd looked at their rates several times, even to the point of ringing up, but was alarmed at the potential to not receive that which you've paid for.
IIRC not so long back, another  posted up details of the company's structure and the way it held money (or was it the other one?), and that was the nail in the coffin for me.
Sorry not much help.
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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Look elsewhere on the Moneysavingexpert site too, as I am sure I saw a couple of threads there - including details of the administrator.
I think that Crown were recormmended by moneysavingexpert, among others, and were (again, from memory) the company used in the link from the BMI website.
Scant comfort, I know, but you are far from alone.
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Yellow Pyranha
Moneysavingexpert has a forum thread on Crown Currency which currently runs to about 50 pages and 900 posts....
Apparently an administrator has now been appointed - so we'll just have to wait and see. There's talk of 13,000 customers with unfulfilled orders - and tales of families expecting £2,500-worth of dollars for for Disneyland trips in 3 days time, others having to cancel holidays etc etc. One customer has ordered $20,000.
My loss is bad enough - nobody can afford to lose £1200 - but the stories above are utterly devastating.
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Wasn't there some scandal involving crown and Man United football club 
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I'm sure we had a discussion on this a few months back and a couple of people including me felt that the service provided by Crown was risky. Or maybe it was another of these "pay now, we'll give you your forex later" businesses.
However, I searched and could not find the discussion.
Sorry about the £1,200 - hope you recover some of it at least.
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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It's looking again that old-fashioned, boring, expensive banks who cover their costs and don't go bust are the best handlers of our money. Charging more than lowest-price competitors but staying solvent has its virtue.
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horizon, I think there was some talk on the Pound v euro thread. Company on there was Travel Money Services, but clicking the link takes you to this page http://www.travelmoneyservices.co.uk/
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snowHeads are a friendly bunch.
snowHeads are a friendly bunch.
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mountainaddict, i had £1220 aussie dollars and about £500 in various smaller currencies due for delivery tomorrow for a trip of a lifetime next week , so will keep you informed of any relavant news, via this thread or pm would be glad if you would do the same.
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And love to help out and answer questions and of course, read each other's snow reports.
And love to help out and answer questions and of course, read each other's snow reports.
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Neilski, mountainaddict,  bad news.
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Bad news - but they were in a potentially dodgy position - allowing you to buy euros at a very decent rate for a date far in the future. In other words customers were funding their currency speculation. I suspect they were not well hedged.
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You know it makes sense.
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When I read that thread which mentioned a spot rate of about 1.17 and a one month future of about 1.23 I thought there was something dodgy.
Anyone who nhow forward rates in FX are formed would have thought the same.
In a nutshell: forward rates in no way at all give an indication either way of what the market thinks the rate will be on that date.
Forward rates are merely a mathematical construct with the inputs being Spot, Interest Rate for currency A and Interest Rate for currency B.
(Interest Rate being the rate in the market from spot to forward date).
In the case of that Euro quote above...the rate was not a Forward Rate, it was a forward speculation by Crown.
I guess they got it wrong...big time wrong.
Last edited by You know it makes sense. on Mon 4-10-10 23:06; edited 1 time in total
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Otherwise you'll just go on seeing the one name:
Otherwise you'll just go on seeing the one name:
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| rungsp wrote: |
| When I read that thread which mentioned a spot rate of about 1.17 and a one month future of about 1.23 I thought there was something dodgy. |
Yeah. In their mailshot dated 23 Sep they offered rates of 1.2325€ and 1.6055$ for delivery on the 29th. This was days before the rates sank back to 1.14 - and weeks before their business goes bust? 
I've used them before with great success, but am rather pleased I didn't take them up on that offer.
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Poster: A snowHead
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A bit unrelated.. but what happens if those companies that offer you to pre-load euros on a card and then use abroad for next to nothing goes busts? Will the money remain on the account?
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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Even last week they were offering about 1.22 in 5 weeks. I nearly went for some a little while ago but didn't as it would have been delivered after my trip at October half term. Near miss. Commiserations to those that have lost out.
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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Deals which are too good to be true are almost always just that. Ones that involve you sending cash to someone you don't know, to get your good deal at some time in the future, don't take a lot of working out.
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bar shaker, true. but then hindsight is always 20/20 isn't it?
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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Timmaah, I would assume that as they carry a Visa or Mastercard logo, your money would be safe.
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You'll need to Register first of course.
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Taking the hit on a Visa transfer is nearly always worthwhile, I reckon. A small insurance policy.
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mountainaddict, Good attitude. It's a painful hit but in a couple of years time you will barely remember it. Fingers crossed that the company can repay most of the outstanding amounts.
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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| Timmaah wrote: |
| A bit unrelated.. but what happens if those companies that offer you to pre-load euros on a card and then use abroad for next to nothing goes busts? Will the money remain on the account? |
Timmaah, in response to your post, I received this today from Caxton FX which I use. Fingers crossed all will be okay.
Dear
You may have read recently about the collapse of Crown Currency Exchange, a travel cash supplier, based in Cornwall. I am writing to reassure you about your funds held on your Caxton FX card.
In addition to the financially robust nature of Caxton FX Ltd, as a Caxton FX cardholder you have an additional level of security as all monies loaded onto Caxton FX cards are deposited at Newcastle Building Society (NBS) on behalf of our cardholders.
NBS is a well capitalized 'mutual' Building Society. As such, NBS is regulated under the Building Societies Act of 1986 as amended at the end of 2003, as well as by the Financial Services Authority (known as the FSA). Under the terms of the Act a company can only be called a Building Society if "its purpose or principal purpose is that of making loans which are secured by residential property and are funded substantially by its members". The Act goes further and stipulates that at least 50% of the funds raised by a Building Society must be raised from deposits from the members. In this respect, the Building Societies are much more conservative than Banks and therefore less risky.
Therefore, in the unlikely event of NBS running into financial difficulties, the money would be protected. Indeed, the following statement has been made by NBS directly - "We are able to guarantee the safety of all prepaid card balances as this money is held completely separately in a designated client account, which would not be affected even in the event of the Society experiencing financial difficulty".
If you have any concerns please call our customer service team on 0845 222 2639 who can answer any queries you may have.
Yours sincerely,
Rupert Lee-Browne
CEO
Caxton FX
4 Grosvenor Place
London, SW1X 7HJ
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From what I'm hearing the Directors of Crown Currency could/should be in for the high jump. £20m taken up front but only £3m sitting in accounts. Evidently they themselves didn't buy forwards, didn't hedge in any way. They just hoped that the market would move in their favour and that more and more people would use them and make deposits. So, in theory, by growing, they'd always have the cash to honour their committments but must have hit a huge cash flow hole now that the peak season is over and it also looks like they must have moved large amounts of dosh into their personal estates. It's of no use to those who might get 15p in the pound back but I hope they get banged up Enron-style.
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snowHeads are a friendly bunch.
snowHeads are a friendly bunch.
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ponzi scheme???
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And love to help out and answer questions and of course, read each other's snow reports.
And love to help out and answer questions and of course, read each other's snow reports.
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mountainaddict, I have seen these sort of companies when looking for forex deals but they just rang alarm bells in my head. Perhaps some are fine, this was a one off and I am the one losing out on excellent rates. Personally I have treated these companies as one up from the emails from Nigerians asking for help to transfer £80,000,000 out of their country. I couldn't see how they could do it and the rest of a competitive market place couldn't... which normally means they can't either and its a con.
I'm sorry for your loss and agree that it will be devastating for some families who are less fortunate. I doubt a credit card purchase would have been any help as I suspect it would be billed as a cash withdrawal, the same as you would get from using your credit card at an airport forex shop, or from using it in a foreign ATM. The same rules about higher interest rates for cash and interest on outstanding balances apply when using your card for forex.
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| Quote: |
Personally I have treated these companies as one up from the emails from Nigerians asking for help to transfer £80,000,000 out of their country.
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That's a con too? Damn.
Yes, looks like it, and look what happened to Mr Madoff and that Texan, "Sir" Whatsisname.
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You know it makes sense.
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| mountainaddict wrote: |
| ...Yep, hindsight is indeed great.... |
Well, those who did not speculate with Crown Currency were indulging in foresight - or at least felt the risk looked uncomfortable.
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| The situation feels bad enough without folk smugly advising on other people's misfortune that it was "Too good to be true." |
I do sympathise with your plight. OTOH I suspect that you for your part would have been feeling smug about the rate you would have realised had the deal come off, and that you had got your € at a better rate than fellow sHs.
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| ......they were also recommended by Moneysavingexpert.com. .... |
Moneysavingexpert.com and Money Which? are very good at showing what rates are available. They don't seem good at assessing risk. IIRC Northern Rock savings accounts were considered a good deal.
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Anyway, the company's administrators may yet save the day  !! |
I hope you get at least some cash back - good luck.
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Otherwise you'll just go on seeing the one name:
Otherwise you'll just go on seeing the one name:
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I have lost £1,600 to CCE - due for delivery in 2 weeks time.
I have used them a couple of times before and the service has been good.
Their exchange rates were always good - but never so much better than the competition to ring alarm bells.
The fact that they offerred rates of E1.24 for October deliveries if purchased in Aug/Sept simply reflected the market at that time. £ has subsequently weakened so the rates have gone back down. All their competitors were offering similar deals at that time.
I suspect there may be claims against the directors personally - if they have any assets - for trading whilst insolvent. This is a simple business model and it should have been easy to keep track of their solvency.
I am a Chartered Accountant so feel doubly aggrieved that I got caught by this !!
C'est La Vie - I am lucky that the loss will not affect my ski plans, but I will take extra care in future.
Last edited by Otherwise you'll just go on seeing the one name: on Tue 5-10-10 19:20; edited 1 time in total
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Poster: A snowHead
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My god!! I'm sorry to hear about this folks, makes me glad I'm a little wary about on-line things and possible scams in general. I got my last lot from the local travel group where they handed me the cash there and then. I hope you manage to get your cash back.
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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| Quote: |
I got my last lot from the local travel group where they handed me the cash there and then.
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Not unknown for forged Euro notes to get in among that.
Credit cards. Cost a little bit more but at least you get a breakdown of all that you spent and months/years/life to pay it off. Amazing how fast you can get through cash when you have a big wad of it (especially if you lose it). Somehow slightly less spend-happy when I'm putting it all on a card.
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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| PBJ wrote: |
Their exchange rates were always good - but never so much better than the competition to ring alarm bells.
The fact that they offerred rates of E1.24 for October deliveries if purchased in Aug/Sept simply reflected the market at that time. £ has subsequently weakened so the rates have gone back down. All their competitors were offering similar deals at that time.
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The 12 month high is 1.23560, which was a spike at the end of June. At no point in the last 12 months (or indeed much further back) could they have bought Euros for £1.24. Every other time the pound got around 1.20 the Bank of England did something to bring it back down again. That's exactly what they did this time as well.
However by this time they had some satisfied customers and a good deal of word of mouth. Offer a great rate, get large amounts of cash into your ponzi scheme, then scarper. It really was an obvious scam.
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I suspect there will be valid claims against the directors personally - if they have any assets - for trading whilst insolvent.
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They are long gone. Holed up somewhere until the coast clears and they know there won't be any charges. They couldn't care less. Nothing has been done about the Phoenix 4 and they stole a hell of a lot more. I wouldn't hold my breath.
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You need to Login to know who's really who.
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Marks and Spencers for me, plus their anti money laundering nosiness doesn't kick in if it's under £500 cash 
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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PBJ, Lager, just had a look at this on Bloomberg.
The august peak rate was 1.2250 on the 23rd.
The 2 month forward for GBP/EUR is -50 basis points, implies a market rate of 1.2200
There is just no way that 1.24 was a real rate at any time.
I can only reiterate that forward rates have NOTHING to do with predicted FX rates, they are ONLY a function of respective rates for the period and spot.
1.24 was a teaser rate for what has turned out to be a scam.
If their competitors were offering similar rates the they too should be regarded with great suspicion!
Thank goodness for the small mercy that in the bigger picture it was not a life changeing amount.
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PBJ, mate - that's a crock. Tough luck and all that, but I am glad you are not my accountant.
achilles, spot on.
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They had actually been operating for 5 years so not really a set up that you would have predicted to be here today, gone tomorrow.
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| Boredsurfing wrote: |
| Marks and Spencers for me, plus their anti money laundering nosiness doesn't kick in if it's under £500 cash |
Don't you have a French bank account?
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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achilles,
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Moneysavingexpert.com and Money Which? are very good at showing what rates are available. They don't seem good at assessing risk. IIRC Northern Rock savings accounts were considered a good deal.
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Was it not a good deal? I thought the tax payer bailed out NR.
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FAQ
