Len Dastard: affected by the Crown Currency Exchange collapse?
Hello my bonito arco iris, Len Dastard here - consumer law expert and make-believe 70s Mexican wrestler. Let us waste not a moment longer with pleasantries, and plunge our fists straight into the entrañas de la bestia...
Some unfortunate news yesterday for those that had ordered foreign currency from Crown Currency Exchange, which went into administration. Over 13,000 customers are thought to be affected, including avid Bitterwallet reader Ben who had ordered $3,000 of US currency just last month.
Says amigo Ben: "CCE didn't offer payment by credit card due to charges, instead asking for payment by bank transfer. However, this now potentially means that everyone is unprotected as they may have been if paying by credit card."
MCR were appointed as Joint Administrators yesterday. Their website has gone live for anyone wishing to know a little more about what they will do and the next step.
When a company is facing financial difficulties it can be placed into administration. This means that, during the period in which it is in administration, the affairs, business and property of the company will be managed by the administrators. In this case, MCR.
What is the administrators purpose?
• Rescue the company as an ongoing concern
• Achieve a better result for the company's creditors
• Realise property to make a distribution to one or more secured or preferential creditors
The administrators are given the task of assessing what is the best course of action to take and what is fair to all creditors.
What has happened to my order?
Debts owed to those who ordered currency will probably be classed as unsecured debts. That means that they are not secured against the company (as a mortgage would be against a property) and they instead “float around” the company and stay there until they are either repaid or written off. MCR have said that a full review of all customer orders is currently being conducted. These are all transactions due for delivery from 4th October 2010 onwards, or any outstanding orders prior to this date that have not yet been received.
What should I do next?
MCR have said that they will be in contact with all creditors as soon as practicably possible. In the meantime it would be prudent to gather all correspondence relating to your order and keep this in a safe place. MCR will then ask you to complete this “proof of debt” form to show that you are owed monies. It would be wise to get this done now and returned.
It seems that the only thing to do is play the waiting game. This is such an unfortunate situation that many people find themselves in, as Crown Currency Exchange did not allow people to use credit cards they will not have a guarantee available.
The Joint Administrators are obliged to write to you, as a creditor, within 8 weeks of their appointment. This report will provide details of their proposals to settle the debts. This report will hopefully give you a better idea as to whether you will be getting your money back or if not all, how much should you expect. It is difficult to give any prospects until this document is made available to creditors. In the meantime it is important to:
MCR have also set up a dedicated call centre to deal with any queries. The telephone number is 020 7487 7240.
As soon as there is an update on the position of Crown Currency Exchange we will let our readers know. If you have any other queries (or require assistance completing the proof of debt form) please contact us at [email protected]
Mantendré los dedos cruzados.