A leading currency exchange service with over 14 years of experience is reportedly urging clients to meet their payment obligations for currency transactions, even as it finds itself unable to process these exchanges due to account freezes mandated by prosecutors.
The firm claims that these account blockages have inflicted significant financial damages on both itself and its customers. In recent communications, it has encouraged customers to lodge complaints with the Polish Financial Supervisory Authority (KNF) and the prosecutor’s office, asserting that these entities are to blame for the ongoing issues.
According to the company’s statements, the inability to access accounts has severely hampered transaction execution, ultimately resulting in users being forced to exchange currencies at considerably higher rates through banks and other institutions.
Despite these complications, some clients have reported receiving reminders from the company requesting payment for exchanges that were never completed, warning that failure to do so may result in liability for damages under Polish law.
Many customers attempting to exchange currency have found their transactions hindered by banks due to the prosecutor’s office’s involvement, leading to the return of funds to their accounts. Even so, the firm is persistently demanding that these customers fulfill their payment responsibilities, even for transactions that could not be completed due to external circumstances.
The company has emphasized that the account blockages are due to actions taken by state authorities and are not a result of its operations. It maintains that clients are still expected to settle their obligations, regardless of the situation’s context.
However, this stance has raised eyebrows among legal experts, with one attorney labeling the practice as potentially misleading. The expert indicated that clients shouldn’t be held accountable for a service that could not be delivered due to the firm’s account issues, branding such demands as an unfair market practice.
In the wake of these complications, plans for court proceedings are reportedly in the works, alongside efforts to challenge what the firm describes as disproportionate security measures destabilizing its operations.
Financial reports reveal that the parent company of the currency exchange service has not turned a profit in eight years. Accumulated losses by the end of 2023 are estimated to be around 191 million zlotys (approximately $48 million), with loans totaling another 130 million zlotys (about $32.5 million).
The predicament of this currency exchange service began to escalate in October, when the KNF withdrew its payment license, concurrent with an investigation by the prosecutor’s office into its activities.
Compounding the situation, the company has been unable to facilitate customer withdrawals since late October and has openly clashed with regulators. At one point, it created a controversial product in response, announcing it would manufacture toilet paper branded in a manner intended to mock the regulatory body.
Despite the challenges, the company maintains that it is not at fault and continues to insist that clients fulfill their financial obligations related to transactions that have been halted. There have also been insinuations that the prosecutor’s office initiated an investigation into the KNF at the company’s behest, though direct inquiries indicated that such requests had been dismissed.
This serious situation illustrates ongoing tension between the currency exchange service, regulatory bodies, and the legal framework surrounding the processing of financial transactions within Poland. As clients await resolution to their monetary disputes, the firm continues to call for compliance with payment demands under difficulty.