“I send 800 euros every month to help my son pay for college and general maintenance. It’s been over a week and the money hasn’t arrived yet.” These are the words of Nara Barazzo, a Brazilian immigrant who works at an industrial laundry in Switzerland.
Countries this week have offices and sales offices in Belgium, Brazil, Canada, Chile, Congo, Côte d’Ivoire, France, Germany, Ireland, Italy, Mexico, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom and United States. are among thousands of customers across Europe who were shocked to hear that Small World (LCC), a money transfer company that has been in operation since 2005, has suspended its services.
“I have been using them for over 13 years and it is unfortunate that they have left so many people without money. Earlier this week I tried to contact Small World by email and received a message that my messages had been blocked,” Baracho explains, providing screenshots of the messages he received as proof.
Small World LCC, a popular remittance service among immigrants, recently provided remittance services to over 180 destinations worldwide. In 2018, the company generated revenues of over £110 million.
However, on Thursday, June 14, a “Service Discontinuation” notice was posted on the Small World website informing customers of recent changes and that the company was no longer accepting new customers or agents, and that international money transfer services had been discontinued.
“We would like to tell you about some important changes in Small World.
As of now, Small World has stopped accepting new customers or agents, accepting funds, or disbursing payments to existing customers through any channel, including agents, branches, websites, or mobile applications.
If you request a payment from us, we may not be able to make that payment. If we have already sent funds to a bank or other third party to deliver the funds to the person you wish to pay, it is possible that the bank or third party has or will have paid the funds to your recipient. “It’s normal time.”
Customers visiting physical locations in the UK, Italy, Spain and Switzerland also saw similar messages posted on the closed doors of Small World LCCs. This announcement was not 100% true. Throughout June 14thDayAt Small World LCC, even though most of the site had limited access, the money transfer button was still active hours after the company began notifying customers of the service outage.
For Marbel Luz Carrillo, a Colombian living in Barcelona, Spain, that period is long gone. This worker used Small World LCC on Saturday 8 June.Day A week after sending money to help relatives make repairs to their home, Marbel is still waiting to hear back from her family about whether they will receive the money.
“I have been in Spain for 24 years and have sent money through this company (Small World LCC) on many other occasions without any problems. It is surprising that this is happening because in my opinion they are one of the best companies to send money abroad,” said Luz Carrillo, expressing her disappointment. She is currently unemployed and used the money she received as a retirement allowance to help her family back home.
“I will continue to insist that Small World LCC return the money sent to me or pay it in my country (Colombia). If not, I will report you for fraud to the competent authorities here in Barcelona,” says Mabel.
Another victim of Small World LCC this week is automotive paint technician Adilson Mamede. He sent £210 to Brazil last week through a branch in London to help his family buy tickets to visit him. On Wednesday, after several days of the transaction not being completed, Adilson visited the same branch and was told that the delay had been caused by a technical issue with the Small World LCC database and that the money would soon arrive at its destination. After 48 hours of no update from the money transfer company, he returned to the branch, but this time it was closed, with several posters announcing the end of the operation. He never got his money back.
Jennifer Cortegana, a student living in Peru, has been waiting since June 7 for money sent by her father, who works in the transport industry in Spain.
“The money is to pay for my college and health expenses. He has used Small World LCC before and had no problems. They are now not responding to any form of contact. The office is closed and no calls or emails have been received. “Not responding.” Jennifer is worried.
The Brazilian model, who preferred to remain anonymous, used Small World LCC for the first time last week in Italy, where she lives. The money she sent to help her family in Brazil has not even arrived. She said: “She deposited money through Small World on June 8th and she received a call the next business day saying the money would be deposited into the recipient’s account. The store is now closed and no money has reached her family,” says the freelance expert, who said she contacted Small World LCC customer service but “was informed that there was a technical error in the system which could cause problems.” “There is no date for her return to normal activities,” she revealed.
Customers who suffered from the delay in payment by Small World LCC are now coming together to get their money back. Groups have been created on social media platforms such as Facebook and Telegram. The goal is to collectively sue the company for breach of contract.
Euronewsweek contacted Small World LLC using the phone number available for customer service and individual branches in the UK, Spain, Switzerland and Italy. Calls were routed to voicemail, but no feedback or return calls were made. Calls to Small World LLC’s headquarters in Blackfriars, London, were answered with a recorded message informing customers that the company was no longer accepting new registrations or money transfers, and an automated email was provided to callers with instructions on how to track the status of their transaction.
Small World’s alleged collapse comes months after the company, along with two other transfer companies, was fined £139,500 by the UK’s Financial Conduct Authority (FCA) for breaching competition rules. In this case, UK regulators found that Small World, Hafiz Bros and LCC Trans-Sending had adjusted certain exchange rates offered to convert pounds to Pakistani rupees when transferring money to Glasgow customers.
Euronewsweek also contacted Equistone Partners, one of Europe’s leading mid-sized private equity firms that invested in Small World Financial Services in 2018, but there was no response from its UK office.
