Sending Money Home Costs Too Much, According to Latinos
pO157.
Posted to Business on Thu Aug 09, 2007 at 03:55:48 PM EST (promoted by port1080). RSS.
Latino immigrants returned $45 billion USD home in 2006, up from $30 billion in 2004. Now they want to make sure that more of it reaches their homeland instead of ending up in the pockets of transfer companies.
NJ resident Jose Villanueva sends some money back home to Honduras every month. However, for each $300 he sends Western Union charges between $11 and $15 as a fee to wire the money to his 3rd world nation.
Others who send money back to their homeland state the terms and rates charged by Western Union are unfair claiming it costs the company only $5 to process a transaction to send money to Mexico, yet the corporation demands $14.99 to send it within 1 hour, or $9.99 within a day. Immigrant rights groups claim that the actual amount is more like $20-23.
They point to the profits claimed by Western Union from the cash transfer business and demand that some of the money be returned to their communities or rates be lowered. Western Union responds by saying that its prices are reasonable and they have been slashed repeatedly in the past several years as more competition moves into the field.
These latino groups demand more "community reinvestment by Western Union." A recent report shows Wal-Mart reinvests $2.30 per $100 of profits into community programs. Ben and Jerry's reinvests $7.50 per $100 of profits. Western Union, on the other hand, invests only 32 cents per $100 of profits into the community.
Western Union spokesman Daniel Diaz replies the company is "leading the trend in terms of transparency" and "We provide affordable and convenient services. It's important to note that consumers around the world have many options in terms of sending money yet they consistently choose us because we're trusted and have 150 years history of serving consumers around the globe."
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