New York Attorney General Letitia James has partnered with the U.S. Consumer Financial Protection Bureau (CFPB) in a lawsuit MoneyGram International Inc. and MoneyGram Payment Systems Inc. (MoneyGram) that accuses the remittance providers of repeatedly violating consumer protection laws.
The lawsuit charges MoneyGram with repeated delays in money transmissions that created financial trauma for those awaiting their remittances. The company is also accused of repeatedly failing to accurately disclose how long it would take to make funds available to the recipients abroad and of inadequate employee training and a failure to report the results of its internal investigations into problematic transactions.
The CFPB stated it had been investigating complaints against MoneyGram for a number of years and said the company failed to retain evidence of its compliance with certain error resolution requirements as required.
“Our immigrant communities trusted MoneyGram to send their hard-earned money back home to loved ones but MoneyGram let them down,” said James. “Consumers deserve to know where their money went. Companies have an obligation to be transparent with consumers, treat them fairly, and follow the law, but MoneyGram repeatedly failed to do so. Today we are suing MoneyGram to correct their unlawful practices and prevent them from harming consumers.”
Dallas-based MoneyGram operates in more than 200 countries and territories, serving 47 million customers in 2021. The company reported $1.2 billion in revenue for 2021.
Photo: Raysonho / Wikimedia Commons
