Foreign exchange specialist Eris FX has launched a stinging attack on price comparison websites, arguing that consumers aren’t getting a fair deal.
It is calling on industry regulators to investigate how comparison sites operate, so that consumers can see how results are sourced. It also wants sites to disclose how much commission they are paid by providers.
Helen Scott, managing director of Leeds-based Eris FX, said: “These sites purport to be the consumer’s best friend but actually they are entirely self-serving. It’s the website that benefits, not the consumer. Users are making commercial decisions when they don’t fully understand what they are being quoted.
“No-one is regulating this industry and it’s high time that it was put under the spotlight.”
In January, the boss of Co-operative Energy accused price comparison websites of misleading customers and pushing up bills. Ramsay Dunning called on the comparison sites to disclose how much they charged in commission each time a business or household changes supplier.
Leeds-based Eris FX is leading the move towards greater transparency in the foreign exchange market. It uses a “what you see is what you get’” pricing structure with a guaranteed rate, which includes free same day payments and no additional fees. Customers can use its currency converter tool to input rates from other providers and compare the total cost of the transfer.
Eris FX has even launched its own comparison website, which names and shames companies that are not transparent about their customer dealing rates (www.currencyratescompared.com).
Eris FX is a brand name of 4X Currency Corporation, a foreign exchange specialist which has been using its software to save money for thousands of customers since 2006.