Liquidation
The company went into liquidation in June 2007 owing, according to the company directors, GB£1.7 million pounds to the public who had used its money transfer service in the preceding 2–3 months.
The scandal sent shockwaves through the Bangladesh money transfer industry in the UK. Measures are being put in place by the Government of Bangladesh to ensure a similar situation does not occur again.
The sudden closure of former First Solution Money Transfer Ltd (now known as XTL Ltd) on 28 June 2007 was a major blow to the UK Bangladeshi community which used it to send their hard earned money to relatives in Bangladesh.
Since then, some of the former agents and branch staff of First Solution embarked on a ‘corporate recovery’ package to resolve this situation and reach a position whereby all remittance creditors can be paid.
The new management of First Solution, consisting of 13 former Agents and Branches, successfully acquired the First Solution brand and commenced trading in May 2008.
One of the stated goals of the new organisation was to pay back as much of the money as possible to people who had lost funds in the scandal. It is unclear how much of the money has been repaid.
The UK government was expected to bring in tighter regulation to this sector by 2009.
Read more about this topic: First Solution Money Transfer