Insights for consumers
A money transfer service can choose the terms and conditions they apply to their service. Sometimes, like in Skye’s circumstances, a money transfer service may have a condition that they do not transfer to certain locations or areas. This can be because of international laws or sanctions, banking agreements, or other reasons.
What happened?
In November 2024, Skye made three transfers totalling $400 to family members in the Ukraine. The transfers did not arrive, and Skye contacted the money transfer service expressing disappointment that she could not make the transfers even though she had been able to in the past. The money transfer service explained that the transfers were suspended, and they required additional information from Skye about who was receiving the money as they were concerned that the transfers breached international sanctions. The money transfer service did not hear back from Skye, so the transfers were not processed, and her account was closed.
Skye complained to FSCL.
What were the parties’ views?
Skye complained that the money transfer service had removed her family member as a payee from her account, had refused to transfer money to her family in the Ukraine even though she had made transfers in the past, had closed her account and had not explained why, and had taken too long to refund her money back to her. Skye did not think it was fair for the money transfer service to decide where she can send her money.
The money transfer service explained that the transfers Skye was making appeared to be going to a recipient who lived in a location where they did not make transfers and explained that the excluded locations were listed in their terms and conditions that Skye agreed to when she signed up for the account. The money transfer service asked Skye for more information about the recipient and asked Skye to confirm that she understood the terms and conditions on her account. Because Skye did not respond, the transfers were not processed, and her account was closed.
What was FSCL’s view?
We could see from the information provided by the money transfer service that the money transfer service had explained to Skye why the transfers were not made and why her account was closed. We could also see that the two-month delay in Skye receiving her money back was likely caused by the combination of the money transfer service waiting for Skye to respond with information, the money transfer service completing their own investigation into the transfers and Skye’s account after Skye had not responded, and general processing delays. Skye confirmed that she had received the money back during our investigation process.
We spoke to Skye over the phone about the information that the money transfer service had provided, to see whether that resolved her complaint. Skye explained that she did not agree with the money transfer service’s explanation, but that she did not want to spend any more time on the issue.
What was the outcome of FSCL’s investigation
We followed up with Skye after the call to see whether she wanted to continue with her complaint. Skye confirmed that she wanted to discontinue her complaint, and we closed her file.
