Gambiaj.com – (LONDON, United Kingdom) – Thousands of individuals in developing countries have been left in a dire situation following the sudden collapse of the Small World money transfer service. The company, a subsidiary of LCC Trans-Sending, ceased trading on June 10, leaving countless customers in distress as they await the return of their vital payments.
Judith Anderson, a Small World customer from Cardiff, is among those affected. Having used the service for the past decade without issue, her recent £400 payment, intended for four families in the Gambia, has not been received. “This is a big inconvenience for me, but it is a disaster for the families that I send money to who rely on it to buy rice each month. There will be thousands of others around the world who will have been waiting for money they rely on and who won’t have received it,” Anderson said.
Fortunately for Anderson, her payment was made after the administrators were appointed, meaning she will likely receive her full £400 back. However, the situation is more uncertain for those who sent money in the period leading up to the firm’s collapse.
Small World facilitated cash transfers for collection in over 170 countries, making it a crucial service for many people, particularly in West Africa and the Philippines. The company was especially popular among workers who sent money back to their families or made charitable donations. Now, these individuals are facing an anxious wait to see how much, if any, of their payments will be recovered.
In a statement on its website, Small World announced: “Small World UK and its associated group businesses have ceased receiving or processing new money transfer transactions through its agents, branches, websites, and mobile applications.”
Customers who deposited money into the company’s account, expecting it to be forwarded to friends and family, are now left in limbo. Distressed customers have turned to online forums, such as Trustpilot, to voice their concerns and report their pending payments.
On June 18, the Financial Conduct Authority (FCA), which regulates LCC Trans-Sending, revealed that the company had entered special administration. Grant Thornton, the appointed administrators, are currently reviewing the company’s finances to determine the amounts owed to customers.
Grant Thornton has assured customers that they are working to return amounts owed to UK customers “as soon as possible.” They stated: “This will require securing all books and records and undertaking a review exercise of amounts owed to customers. Unfortunately, while this work is being undertaken, customers will not be able to access the amounts owed to them.”
The FCA highlighted that LCC had numerous agents accepting money from customers on its behalf. LCC’s UK operations reported a turnover of £22.7 million in 2022 and employed 60 staff members.
As the administrators continue their work, thousands of people remain in uncertainty, hoping for a resolution and the return of their much-needed funds.
