Photo: Raysonho @ Open Grid Scheduler / Grid Engine
MoneyGram, an international money transfer provider that serves hundreds of thousands of customers in the United States every year, has agreed to pay $250,000 for failing to follow consumer protection laws and jeopardizing their customers’ money transfers.
In April 2022, the Consumer Financial Protection Bureau, or CFPB, and the state of New York sued MoneyGram for failing to either transfer funds on time or provide timely refunds, and for ignoring its legal requirements to swiftly and accurately investigate errors.
After the CFPB ended its participation in the lawsuit, New York Attorney General Letitia James reached a settlement with MoneyGram requiring it to pay a penalty and follow consumer protection laws.
“New Yorkers who want to send funds to their loved ones abroad should be able to trust that the companies handling their hard-earned money are operating honestly,” James said in a statement. “MoneyGram failed to follow the law for years, sometimes leaving its customers in the dark about where their money went.”
MoneyGram is a non-bank financial services company that enables consumers to send money from the U.S. to more than 200 countries and territories. It has 440,000 locations throughout the world and serves hundreds of thousands of New Yorkers every year through millions of transactions.
MoneyGram violated state and federal consumer protection laws for years by failing to make funds available to its customers on time, to quickly resolve errors, or to provide accurate information to its customers, in violation of the law, according to the state’s lawsuit.
In addition to paying a fine, the settlement requires MoneyGram to transfer funds and process refunds on time, ensure that disclosures are accurate, and investigate errors promptly.
