Uphill struggle to get Travel FX to return my cash

Travel FX has seized �1,600 after its systems flagged up my currency exchange transaction as 'suspicious'In October last year I went to Nepal to climb the mountain Ama Dablam. I needed $2,500 in cash in order to pay the sherpas, so I searched on Google for companies that would give a better exchange rate than I would get at the airport. The best rate was offered by Travel FX, so I transferred my money to them from my Nationwide account. I currently live in Spain and the cheapest flight I could find to Kathmandu was from Heathrow, so I decided to fly to England a day early to visit my parents and asked for the money to be delivered to their address. The money did not arrive and when I contacted Travel FX I was told the payment had been flagged as suspicious by their money-laundering procedures and would not be released until I had proved I was a real person and that the money had been transferred from a real bank account. I had to borrow money from my parents. While I was away my wife gathered the necessary information, which she sent to Travel FX.On my return from Nepal in November I requested that Travel FX return the money to my account as I no longer required the cash. Travel FX informed me that I would have to request the �1,600 be returned through my bank. I asked Nationwide to request the return of the money, and it has made numerous requests with no response. I have told Travel FX that my bank is requesting the money and asked if there was any reason it could not be returned. They replied that their internal procedures mean that they cannot supply me with any information on the matter. I have asked Nationwide to write directly to Travel FX but they have not received any reply either.There seems to be an impasse as Travel FX will not communicate with anyone regarding the return of the money. Do you have any advice as to how I should proceed? GH, Spain When we took up your complaint we thought this would be simple to resolve, as these things usually are the result of an administrative error. However, this has been a nightmare and like you, we have found Travel FX to be one of least helpful companies we have dealt with this year.As you say, it refused the transaction on the grounds that it contravened its rules. That's fair enough, as your transaction was unusual, but then to do nothing to return your money ? and to refuse to get involved ? is worrying, given that you have provided your passport and other ID evidence.Throughout our extensive discussions, company director Graham Tennant has argued that to have repaid you your money would have contravened the money-laundering rules. Instead, he and his firm has insisted that you ask your bank, Nationwide, to recall the payment. "This is a method approved by HM Revenue & Customs to whom we are responsible," he says.Nationwide has repeatedly asked for the money to be sent, but it hasn't happened. We asked Nationwide to look at this and it says it has requested the money again, but nothing has appeared. It can't compel Travel FX's bank, Lloyds, to return the money. Throughout, Travel FX has blamed the delay on the banks, and argued that its hands are tied.To see whether this "nothing to do with us stance" adopted by Travel FX holds water, we contacted Kevin Robinson, a partner and expert on money laundering at solicitors Irwin Mitchell. He expressed surprise at Travel FX's actions and said he could see no reason why the original transaction couldn't have gone ahead. The company could have filed a suspicious transaction report with the authorities, he said, and proceeded with that in place.He says that to halt a transaction, financial institutions have to have prima facie evidence that the money has come from the proceeds of crime. He certainly saw no reason why your money couldn't be returned to your account, and suggested that faced with this stance, he would go to the police to report the money as missing ? something you my have to do.Tennant disagrees and says that "banking theft and money laundering are growing crimes and we want to be active in identifying and preventing them. We choose to err on the side of caution."A look on the web shows this company has plenty of happy customers ? it offers some of the best rates around ? but also others who have experienced problems following failed transactions. Whether other readers will want to use this company to save a few pounds on currency costs is up to them.Finally as Money went to press, some good new arrived. Following pressure from us and Nationwide, Travel FX appears to have finally told its bank Lloyds to send Nationwide a cheque. It will now be able to reimburse you your �1,600.We welcome letters but cannot answer individually. Email us at consumer.champions@guardian.co.uk or write to Bachelor & Brignall, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone numberForeign currencyConsumer affairsConsumer rightsMiles Brignallguardian.co.uk © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

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