Tuesday 15th January 2008
More than half of the UKs money transfers are to be governed by a new customer charter, the Department for International Development (DFID) has announced.
Organisations including the Post Office, MoneyGram and Chequepoint have agreed to the charter.
The UK Remittances Task Force, supported by the DFID, developed the charter to guide firms on the information they should provide to customers.
Under the terms of the new guidance, the details which should be supplied include the exchange rate for overseas transactions, any fees payable and the total amount of money to be received.
Estimates of where and when the money will arrive at its destination should also be offered, along with help should anything go wrong.
International development minister Shahid Malik comments: "The new charter will give more confidence to people sending money to loved ones abroad by providing better information and transparency."
More than 18,000 outlets nationwide are now covered by the charter - representing over half of the money transfer industrys locations in the UK.
The DFID states that an estimated £2.3 billion each year is sent overseas to 50 or more developing countries.
However, charges for such a service range from £4 to £40 and could top £100 in total per transaction.
Of the cash sent, a third is used to buy food and 21 per cent spent on medical supplies, highlighting the importance of the service for many recipients.
The DFID adds that some countries benefit more from such transfers than from investment through business channels.
In Ghana, three per cent of the countrys national income is derived from overseas investments, compared with more than ten per cent from money transfers.
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