The collapse of UK firm Small World means vital cash transfers aren’t arriving | Banks
Thousands of people in developing countries have been left waiting for vital payments that many rely on to survive after the collapse of money transfer service Small World.
The company, part of LCC Trans-Sending, which allowed users to send money for pickup in more than 170 countries, ceased operations on June 10.
Customers who deposited money into the company’s account, expecting it to be sent to friends and family, and it never arrived, face an anxious wait to see how much of their payments will be returned.
“Small World UK and its associated businesses have ceased to receive or process new money transfer transactions through their agents, branches, websites and mobile apps,” a statement on the company’s website said.
Although not a household name in the UK, Small World is believed to have been very popular in West Africa and the Philippines, often used by workers to send money home to families or by people making charitable payments.
Unhappy customers have taken to forums like Trustpilot to report that they are still waiting for refunds.
On June 18, the Financial Conduct Authority (FCA), which regulated Small World’s parent company, LCC Trans-Sending, said the company had gone into special administration.
The appointed administrators’ accountants, Grant Thornton, are now analysing the books in an attempt to establish who is owed what.
Judith Anderson, a Small World customer from Cardiff, is one of those caught up in its collapse. Anderson said she had used the service for the past 10 years without any problems, but her most recent payment of £400, made at the weekend and intended for four families in Gambia, had not arrived.
“This is a huge inconvenience for me, but it is a disaster for the families I send money to who depend on it to buy rice every month. There will be thousands of others around the world who will be waiting for the money they depend on and who will not receive it,” she said.
The fact she made her payment after administrators were appointed means she is likely to get her £400 back. The picture is less clear for those in the UK who sent money in the run-up to the company’s collapse.
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Grant Thornton has told clients it is seeking to return monies owed to UK customers “as quickly as possible”.
He said: “This will require securing all books and records and undertaking a review exercise of monies owed to customers. Unfortunately, whilst this work is being undertaken, customers will not be able to access monies owed to them.
“Customers should note that where special administrators are able to process amounts due, such amounts will be reduced by the costs associated with recovering and returning them to customers.”
The FCA said LCC had a number of agents who accepted money from customers on its behalf. LCC’s UK operation turned over £22.7m in 2022 and employed 60 staff.
