I was just reading the thisismoney.co.uk article on ‘What really caused Crown Currency to fail’ and it seems that to say its collapse was down to the global economic crisis was far from the truth.
How careful it shows you must be with your holiday travel money – as 13,000 Crown Currency customers sadly found out to their cost.
According to the article, the management of the company were desperately trying to keep the company going by running something like a Ponzi scheme – inflating currency exchange rates in order to attract new customers and their cash.
This new cash was then being used to pay off earlier clients and maintain the illusion that all was well with the company.
As we covered recently on MoneyHighStreet.com, the collapse of Crown has prompted questions over whether your holiday travel money is safe. Thankfully the majority of travel cash providers do not follow the Crown model – rather you exchange cash in person at bureau de changes or get delivery next day in the post.
Perhaps though this really is a wake-up call and emphasises the attraction of using a prepaid currency card – something well worth considering if you are about to head off holiday for the school half term break.