Travellers could be glad to learn that the Office of Fair Trading (OFT) has announced a number of changes to the foreign currency market.
Following a super complaint issued by the watchdog earlier this year, the OFT conceded that poor and misleading information is leading to consumers paying too much when buying foreign currency or using their debit and credit cards abroad.
This has resulted in three major changes to the market. The first of these is a commitment by all of the major banks to stop charging customers a cash withdrawal fee when they use their debit cards to buy currency in the UK. This will come into effect from the end of 2012, allowing consumers to purchase currency from their banks, bureau de change, Post Offices and travel agents, without having to worry about additional charges coming into play if they pay by card.
Mike O'Connor, chief executive of Consumer Focus, commented: “Consumers should be able to buy foreign currency without being misled, confused or short-changed. The OFT has agreed with Consumer Focus that people are losing out due to the action of banks and others buying and selling holiday money. The fees charged are opaque and difficult for consumers to calculate.”
He added that Consumer Focus is also calling for an end to deliberately misleading marketing phrases.
