Martin Lewis' warning to anyone who has used money transfer firm after collapse

20 June 2024 , 08:11

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Martin Lewis announced his MSE team was looking into the collapse of Small World Money Transfer (Image: No credit)

Martin Lewis has issued a call to action following the collapse of a popular money transfer company.

The MoneySavingExpert.com founder took to X to air his concerns following the collapse of Small World Money Transfer. Martin asked: "Have you been or do you know someone impacted by Small World Money Transfer which has gone bust? Are you out of pocket. I hear the firm is common within the Filipino community, especially in London. We're looking at it and would like to find out people's situation."

Payment services company LCC Trans-Sending Limited (LCC), trading under names such as Small World Money Transfer, Small World Financial Services, Express Funds, Global Link, and Bayba (UK), has confirmed that it will no longer take on new clients. The Financial Conduct Authority said: "On 10 June 2024, LCC closed to new business and stopped accepting funds from customers. To make sure customers are protected, we invited LCC to sign a formal agreement about this."

Additionally, on June 13, LCC agreed not to accept fresh funds from existing customers. The FCA highlighted: "Some customers may be facing issues accessing funds they have recently paid in. We are engaging with the firm about how it deals with these customers."

The statement read. "If you have money with LCC or with one of LCC's agents and have trouble accessing your funds, contact the firm directly. LCC is authorised and regulated by the FCA to provide payment services, specifically money remittance services, under the Payment Services Regulations 2017 (PSRs). LCC is also supervised by His Majesty's Revenue and Customs (HMRC) for money laundering purposes."

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In confidential messages from Small World, sent to retailers offering the service on June 14, which were obtained by Better Retailing, it was confirmed that Small World has "stopped providing services and providing customers with additional information". Furthermore, the messages disclosed that Small World believes "not all payments our customers ask us to send will reach the person they are trying to pay". The company also stated that it "aims return funds to senders where possible".

James Rodger