Wirex Limited has committed to make changes to its e-money contract and given the UK Financial Conduct Authority (FCA) an undertaking under the Consumer Rights Act 2015 (the CRA).

This is in relation to three terms:

• A term excluding the firm’s liability as a result of account suspension;
• A term limiting compensation available to consumers;
• A term excluding commitments that may be implied by law.

Wirex Limited has:

• agreed to remove all 3 terms from its e-money contracts with consumers from 1 January 2024;
• agreed to not use these 3 terms (or similar terms with the same effect) in its future contracts with consumers;
• fully cooperated with the FCA in resolving its concerns.

The changes that Wirex Limited has committed to make to its contracts should ensure that consumers better understand the circumstances in which the firm is liable to pay compensation. In addition, compensation will no longer be limited to how much consumers have paid to the firm in the previous 12 months, so consumers should receive appropriate amounts of compensation for their losses.

As a regulator, the Financial Conduct Authority (FCA) can challenge firms using terms that it views as not being fair or transparent under Part 2 of the Consumer Rights Act 2015 (the CRA). The regulator reviews contract terms that it comes across in its supervision of firms. This includes contract terms that are referred to the FCA by consumers, enforcement bodies and consumer organisations.

This has led to Wirex Limited’s undertaking to replace the terms that the FCA considers are likely to be unfair or likely to lack sufficient transparency.