Financial Ombudsman

I posted about this problem on another thread, but that thread has since changed direction and I still need help. I'd like to know how to contact the official financial ombudsman, please.

On 5 October 2016, I contacted HiFX with the intention of making a transfer from my US bank account to a UK business for payment of a purchase here in the UK. After going to my bank to set it up, I realised that it would not be possible so decided to just forget it. The transfer was never made nor even attempted. On the 14 October I wrote to them and told them I had made a mistake and the transfer was to be cancelled.
HiFX is now telling me that I owe them several hundred pounds because they “purchased the funds” at the rate on that day and to reverse it now, because the pound-to-dollar ratio has changed, they would lose that amount. I would never have agreed to that in any case as the dollar-to-pound ratio is becoming more favourable daily to this type of exchange. I did read their terms and conditions (http://www.hifx.co.uk/~/media/files/pcs_terms_and_conditions.ashx), but they are confusing to me. I would never have agreed to it if I'd understood it. And I would doubt that if the exchange rate had gone the other way, I would be receiving a check for the difference!
They say that I have 13 days to pay or they will take legal action. I need to contact the financial ombudsman ASAP.

Thanks.

On 5 October 2016, I contacted HiFX with the intention of making a transfer... On the 14 October I wrote to them and told them I had made a mistake and the transfer was to be cancelled... I did read their terms and conditions (http://www.hifx.co.uk/~/media/files/pcs_terms_and_conditions.ashx), but they are confusing to me.

From the terms and conditions:

Where you have authorised us to perform a Money Transfer, we will go ahead with that Money Transfer unless:
(a) you provide us with clear instructions no longer to proceed with that Money Transfer by notice in writing received by us not later than the end of the last Business Day before the day that Money Transfer was due to take place...

I hate to be harsh... but you took nine days to cancel. Did they tell you "the day that the money transfer was due to take place"? What was it in relation to when you cancelled?

Unless you can clearly show you told them to cancel the day before the transfer was going to take place then what I would do is call them up, explain the situation, explain the nine days and ask for a "goodwill gesture". Perhaps forgiving the entire amount or going halves on it? If their website was not clear on the date then you could try that approach - saying you were not clearly told the date at the time so you couldn't know the cancellation deadline.

Almost everyone I know has, at some point in their lives, made a mistake that cost them hundreds of pounds. Pranging the car in the driveway, choosing a scam plumber, etc. A couple of years ago I bought west end tickets for Wicked for my wife and myself. I screwed up the timing though and it was impossible for us to go at the very last moment. Theater tickets are not refundable so I lost £120 to my mistake. It was painful at the time but I had to move on as there was nothing I could do and the stress was not worth it.

I'm really sorry you are in this position. To answer your question see here:

http://www.financial-ombudsman.org/contact/index.html

I'm afraid I agree with ajayre.  The Terms and Conditions quite clearly state the time frame when transactions can be cancelled without penalty.

Good luck with the Ombudsman.

I really feel for you, it's a nasty surprise.

Did you authorize the transaction?  Or did they jump the gun before you had granted authorization?

Why were you not able to set it up with your bank?  Explaining the reasons to HiFX may help.

I agree that they wouldn't have given you a favourable difference.  But the GBP is extremely volatile at the moment, so you can see where a cancelled transaction will affect them.

I've been hit with parking tickets since moving here (all very very silly, simple mistakes).  But unfortunately I was in the wrong, so I had to pay them.

That doesn't mean you can't talk to HiFX and see if they will reduce the penalty or work with you.  Good luck!

Do you have legal insurance?  Sometimes it is included with your home or car insurance.    If you've got it, you could talk to a lawyer for free.

Without addressing wether or not you actually owe this money, you could always call their bluff.  Stop responding to them and see if they are willing to take you to court.  If they do, offer to pay the amount owed at the last minute.

As I said in the other thread, £200 is not worth a company to spend that much time on.  It costs little to send some threatening emails, so that's what they are doing.  It costs more than £200 to take it to the next level.

I guess I'll pay it. I don't want to have a bad credit record. I'll just have to count it as a VERY EXPENSIVE lesson to read the small print and, more importantly, understand it. I just never expected such a stupid move on their part (the purchasing funds ahead of the transfer). They should have made it more clear, like "By continuing this, we are purchasing funds to cover this and you will be responsible for any loss."

Let this be a lesson to others: don't do business with HiFX and always read the T&C for ANY company you do business with!

I guess I'll pay it. I don't want to have a bad credit record. I'll just have to count it as a VERY EXPENSIVE lesson to read the small print and, more importantly, understand it. I just never expected such a stupid move on their part (the purchasing funds ahead of the transfer). They should have made it more clear, like "By continuing this, we are purchasing funds to cover this and you will be responsible for any loss."

Let this be a lesson to others: don't do business with HiFX and always read the T&C for ANY company you do business with!

Have you called them to see if they'll reduce the fee?  Also make it VERY clear that you are spreading the word to others who frequently exchange currencies to not use their services!

It's got to be worth a try to say "I don't believe I owe you this money but if you reduce the total by half,? I will pay today."  I'm sure they'll accept that.