16th Nov 2009- The 1st November 2009 saw the new Payment Services Regulations (PSRs) came into effect. The regulation introduces new regulations for banks and large companies that deal with consumer money transfers. It serves to protect consumers transferring money abroad and has been welcomed by one overseas property company Homesgofast.com as a “Confidence Builder”
The PSRs require that non-bank payment service providers, be either registered or authorised by the Financial Services Authority (FSA).Currency brokers will be now known as Payment Institutions (PIs). The changes will force financial services firms to give prospective customers more information about their products upfront; to give existing customers at least two months’ notice before they cut savings rates; and to pay interest on balance transfers as soon as they receive the money.
Where a customer claims to have lost money through an unauthorised transaction the onus will now be on banks and building societies to prove there is a good reason why they should not be refunded, rather than on the consumer to prove there has been a fraud, as is currently the case
Nicholas Marr CEO overseas property website Homesgofast,.com “ It seems that this regulation is all about making sure the consumer is safe . When buying a property abroad currency firms must keep consumers’ money separate from their own funds this will be a “Confidence Builder” for consumers handing over substantial funds to a broker ”
The PSRs establish certain rules governing how authorised PIs provide payment services where both the payer and the payee are located within the European Economic Area (EEA). These rules are designed, in part, to ensure customer protection.
They will also have to meet stringent criteria set by the FSA in terms of corporate governance, solvency and risk identification and management.
Useful Currency Transfer Resources:
