UFC-Que Choisir has announced that it has been a lawsuit that has opposed Western Union and MoneyGram for "misleading marketing practices", aiming for a weak competition in international currency movements and high ties between nations .
The French Users Association UFC-Que Choisir published on November 27 an analysis of international cash rates. "It is very common to have a relationship between relatives (foreign residents, parents who donate money to student children abroad, etc.) for single-time or recurring jobs," she says his analysis.
A group says that it has been a lawsuit that opposed Western Union and MoneyGram for "misleading marketing practices" and asks the government to "create the conditions for creating a healthy competition". "Western Union or MoneyGram clearly do not tell consumers how they will cost foreign exchange taxes," says UFC-Que Choir. In total, mobile exchange rates for the mobile companies are 2.5% higher than the online companies, and even 7 times more than the banks' exchange taxes.
On these costs, the company is finding the "anesthesia" of the competition, and confirming the targets used: for Tunisia, these vary by 34%, and cost a maximum of 11,40 euros to move 170 euros at Ria, Against 8.50 MoneyGram's knowledge.
10.3 billion were moved outside the euro area
The society is defined. Out of the 19 billion euros that are sent annually from the French border to abroad, 10.2 billion euros will be moved to a country outside the euro area. "Nearly half of this book (52%) is sent to the Middle East and North Africa (Morocco, Algeria, Tunisia and Turkey). To add 1.9 billion euros (19%) to the Asia-Pacific region (Vietnam , China and India) and 1.5 billion will be sent to sub-Saharan Africa (Senegal and Cameroon), or 15%. "
In France, foreign currency costs (including the eurozone) of individuals, cost 6.7% of the amount issued. The user will pay for a service fee, "foreign currency, pay and payment services", and exchange taxes, "result from the difference between the level of change that has been submitted with the provider and the market level, "said the inspection.
The traditional mobile companies are more expensive
Traditional ferry companies (Western Union, MoneyGram, Ria, etc.) cost a 7.3% tax charge. "The cost of this service is up to 12.4% as part of the La Banque Post partnership with Western Union."
New online players (TransferWise, WorldRemit) are cheaper at 2.6% more generally, but services are more limited. These changes can be made through banks, which cost 6.9% of the amount that is sent on average, or La Poste services, which are available. Provide 5% of the amounts transferred.
Behind this average cost, it will hide unwanted differences, ranging from units to duplicate according to their destination. So, "the cost of 179 euros made to Morocco cost € 8.30, or 4.9% of the amount added"; "The same amount moved to Algeria is included around 16.20 euros, or 9.5% of the sum," notes of the report. In total, the fares move to Algeria 64% more expensive than their average fee to move from France.
"In the eight main clans, French prices are generally 14% more expensive than those with European neighbors," said the society. "The most uncertain events are available in Algeria (+ 11%), Morocco (+ 17%), India (+ 22%) and Vietnam (+ 25%)."
The relationship between books is not moved and the price of movements
For the user group, "large market failures are counted for those price barriers". Although a number of surveys with the World Bank contain a bad relationship between pay rates and books; Trade between the two countries, this movement does not work in France.
So, "there is a cost of moving from money to money to Algeria (the second destination zone) which reaches 9.4% of the sum added". "On the other hand, the cost of ferry to Côte d'Ivoire (the fifth country in terms of sizes applied) is only 5.5% of the amount added."
Societal decision: "Competition does not benefit consumers in the cash market". In particular, "the problem for consumers to assess the overall cost of moving money".
Commercial taxation is not very clear
UFC-Que will choose in particular the exchange taxes. For the main key destinations, these represent, on an average average basis, 26% of the total transfer fee of consumer transfers; do. "These fees are up to 42% of transfer filings to Tunisia but are not charged for CFA franchise destinations," said the inspection.
The players are not in the marketplace; Moving overseas money using the same practices when it comes to & # 39; provides information to consumers about what exchange rates are available for them. As a result, almost 15% of companies do not provide billing information, according to the World Bank.
Le Jeune Afrique