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‘Rip-off’ airport currency rates sparks competition probe call

A call for a competition probe has been made after it was disclosed that holidaymakers are being offered as little as €0.87 for a pound by airport currency exchange outlets.

With a record 2.4 million travellers forecast thought to have flown abroad over the weekend, currency firms have been cashing in by offering rock-bottom exchange rates and hefty fees.

One pound is currently worth around €1.11, having fallen in value by around 15% since the EU referendum in June last year.

But bureau de change make their money by offering less than this, with some charging a hefty commission on top.

Travellers using Cardiff airport’s Forexchange outlet were being offered the equivalent of €0.87 per pound, or €87 for £100, on Saturday.

The headline exchange rate was €0.92 for a pound – or £92 per £100 – but the firm also charges £4.99 commission on top.

At a Moneycorp booth at Stansted, £100.66 would buy just €90 – or 90 cents for £1, after £4.99 commission was paid, the Mail on Sunday reported.

British travellers could typically exchange £1 for €1.41 or even more in some cases during the 2015 summer holidays.

Liberal Democrat leader Vince Cable said currency firms should be investigated by the competition watchdog in light of the latest findings.

He told the newspaper: “Holidaymakers heading abroad are being ripped off.”

He added: ”These firms should be investigated by the Competition & Markets Authority whose job is to stand up for the consumer in the face of unscrupulous practices of this kind.”

Better deals are typically offered online or by high street firms such as Marks & Spencer and the Post Office.

Customers who ordered more than £500 from the Post Office could get more than €1.09 for every pound.

A spokesperson for Moneycorp said: “The reason for our higher airport rates is the significant cost associated with operating there.

“An easy and more cost-effective way for customers to buy travel money is to re-order online and collect at the airport. We always encourage our customers to do this.”

A spokesman for Forexchange said: “Costs at airports are obviously higher because of rent and the high service level and long opening hours required.

“Airports normally enforce these requirements with vendors to ensure best possible service to all their passengers on all flights regardless of density of schedule and time. This of course impacts pricing.”

More:

Brits pay heavy price for using bank cards abroad

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