The association UFC-Que Choisir has announced that it has filed suit against Western Union and MoneyGram for "deceptive trade practices," including pointing to weak competition in the international money transfer and high tariffs, Var & # 39; iruyutstsa from simple to double the depending on the country.
French consumer association UFC-Que Choisir published Nov. 27 study of international money transfers. "It is often shipped between close (foreign-born residents, relatives, students who send money abroad and children, etc.) for specific or recurring transactions," she says in her analysis.
The organization announced that it had filed suit against Western Union and MoneyGram for "deceptive practices of trade" and called on the authorities "to create the conditions for healthy competition." "Neither Western Union or MoneyGram will clearly inform their customers about the costs of collection on the stock exchange," said UFC -que Choisir. in general, the transfer of the exchange fee is 2.5% times higher than for Internet companies, and even 7 times more than the exchange fees charged by banks.
Of these expenses, the association with the & # 39 is to stay competitive, "anesthesia", as evidenced by the disparity tariff: Tunisia, they Var & # 39; iruyuts value of 34%, costing no more than € 11,40 for the transfer of 170 euros by Ria, against 8.50 euros per MoneyGram.
10300000000 transferred outside the euro area
The association explains. With 19 billion euros that are sent each year to the French territory abroad, Euro 10.2 billion were transferred to countries outside the euro zone. "Almost half of this (52%) is sent to the Middle East and North Africa (Morocco, Algeria, Tunisia and Turkey). 1.9 billion (19%) are sent in the Asia-Pacific region (& # 39; etnam, China and India), and 1.5 billion are sent to countries in sub-Saharan Africa (Senegal and Cameroon), or 15%. "
In France, remittances abroad (outside the euro area) special price by an average of 6.7% of the amount sent. The consumer pays the costs to operate, "reimbursement of costs for benefits, treatment and payment abroad" and exchange fees ", which is derived from the difference between the conversion rate applicable service provider and the market rate", the study said.
Traditional societies of the most expensive transfer
Traditional company transfers (Western Union, MoneyGram, RIA, etc.) will charge 7.3% of the amount sent. "The cost of this service amounts to 12.4%, in partnership with La Banque Postale Western Union.»
New players online (TransferWise, WorldRemit) cheaper by 2.6% on average, but the services are more limited. These transmissions may also be made through banks that charge 6.9% of the amount sent in average, or services La Poste, which releases 5% of the amount.
For this average hides significant price differences ranging from one to double its intended purpose. Thus, "the transfer of 179 euros, aimed in Morocco worth 8.30 euros, or 4.9% of the amount sent"; "The same amount is transferred to Algeria charged 16.20 euros, or 9.5% of the total," the report says. In general, the rate of transfer to Algeria with & # 39 are 64% more expensive than the average taxi with France.
"In the eight main directions of transmission, the French rate on average 14% more expensive than in other European countries," the association reported. "The most exorbitant rates are in Algeria (11%), Morocco (17%), India (+ 22%) and B & # 39; etnam (+ 25%). "
There is no connection between a & # 39; amounts transferred and transfer pricing
For consumer organizations, "Sur & # 39; serious market failures explain the excess rate." While some World Bank studies have documented an inverse relationship between the level of remittances and on the & # 39; the volume of trade between the two countries, this dynamic is not at work in France.
Thus, the "remittance value of its holdings in Algeria (the second target area) amounted to 9.4% of the amount sent," "On the other hand, the cost of transfers from Ivory & # 39;. Ivoire (fifteen countries in terms of the & # 39; volumes sent) only 5.5% of the amount sent. "
The conclusion of the association: "The competition does not benefit the consumer in the money transfer market." We are, in particular, "the difficulty for consumers to evaluate the total cost of remittances."
exchange costs very little transparency
UFC-Que Choisir tip particular exchange charges. Sixteen major areas that they represent the weighted average, 26% of the total fee billing made by consumers. "These costs account for 42% of the charging of transmission in Tunisia, but not to pay for the appointment with the CFA franc," the study said.
remittances market abroad do not carry the same practice when it comes to consumer information on the amounts of exchange fees with them. Thus, almost 15% of the companies did not provide any information about the billing, according to the World Bank.
With young Africa