More than eight in ten (83%) of UK consumers feel ‘tricked’ and even ‘taken advantage of’ by banks charging hidden fees in foreign exchange, research from TransferWise.
The research investigated how consumers feel about the lack of transparency in the way banks charge for foreign exchange service.
The peer-to-peer international money transfer platform found that 85% of consumers underestimate or do not know the true cost of sending money abroad.
Sadly 28% of respondents said they were unsurprised when they found out banks hide their fees, indicating consumers have come to expect a lack of transparency in financial services.
Of those surveyed 86% believe the government should take an active role in preventing the misleading pricing by the financial services sector.
TransferWise’s Stop Hidden Fees campaign calls for an end to the hidden costs banks and money transfer companies place on pricing in international transfers and travel money.
It asks the government to commit to its pre-election pledge to bring greater transparency to charges and fees applied to foreign exchange transactions.
Taavet Hinrikus, co-founder of TransferWise, said: “It’s deeply unfair for banks to advertise foreign exchange as free to consumers when in fact they just hide their fee in the mark-up they add to the exchange rate.
“Customers just want to know what they’re getting – surely that’s not too much to ask? That’s why we are asking the government to deliver on its pledge to stop misleading pricing in foreign exchange before 2016.”