Upheld: Service failures generally complaint against First Rate Exchange Services Ltd
Financial Ombudsman decision DRN-5684802 of 2025-08-23T00:00:00+00:00. Service failures generally complaint against First Rate Exchange Services Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-5684802 |
|---|---|
| Decision date | 2025-08-23T00:00:00+00:00 |
| Firm | First Rate Exchange Services Ltd |
| Product | Other regulated product |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | First Rate Exchange Services Ltd must: (1) refund £500; (2) pay 8% simple interest on £500 from December 2023 to settlement; (3) provide certificate of deduction if taxation is deducted; (4) pay £300 compensation to Mr P. |
Summary
Mr P purchased £500 worth of Euros from First Rate Exchange Services Ltd in December 2023, but the currency was never delivered. Mr P made multiple attempts to locate his money through visits to a local branch and numerous telephone calls, receiving misleading information in the process. First Rate failed to provide Mr P with a final response letter or provide information to the ombudsman. The ombudsman upheld the complaint, finding Mr P's evidence credible and First Rate responsible for the non-delivery and all subsequent consequences. First Rate was ordered to refund £500 with 8% interest from December 2023 and pay £300 compensation for the distress and inconvenience caused over the 18-month period.
The Ombudsman's reasoning
The ombudsman was satisfied that Mr P did not receive the currency he paid for based on the evidence provided. First Rate's failure to provide a final response letter or information to the ombudsman, combined with Mr P's clear evidence, meant there was no basis to dispute Mr P's account. The ombudsman held First Rate responsible for the initial mistake and all subsequent consequences, including the distress, inconvenience, and time spent attempting to resolve the matter.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| First Rate Exchange Services Ltd, all decisions | 30 | 35% |
| Service failures generally, all decisions | 34,229 | 32% |
| Other regulated product, all decisions | 51,462 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website