E Money firms should take note that the FCA have published an undertaking from Wirex Limited in relation to potentially unfair and unclear terms in its e-money contract.
The undertaking can be accessed using this link - https://www.fca.org.uk/firms/unfair-contract-terms/library but firms should note that it is important their contracts comply with the fairness and transparency requirements under the Consumer Rights Act 2015.
- Exclusion of the firm’s liability as a result of account suspension: a term stated that the firm would not be liable for any losses incurred by consumers in the event that the firm suspended the account in accordance with that term, regardless of the circumstances.
- Limitation of compensation available to consumers: a second term that stated the amount of compensation a consumer could obtain from the firm in the event of a loss was limited to what the consumer had paid to the firm in the 12 months preceding a claim – and that if a consumer had not paid anything, no compensation would be payable.
- Exclusion of commitments that may be implied by law: a third term allowed the firm to exclude any commitments that may be implied by law, to the extent that the firm was permitted to do so.