Attorney General James and Consumer Financial Protection Bureau Sue Major International Money Transfer Provider for Violating Consumer Protection Laws – New York State Attorney General

Disclaimer: These articles have been sourced from internet, Estrategya doesn’t own or in any way belives any opinion as projected in these articles.

Our Office
Bio of the Attorney General
Year in Review
Divisions and Bureaus
Regional Offices
Media
Press Releases
Event Archive
Livestream
Resources
Charities Registry
Complaint Forms
Consumer Resources
Data Security Breach Information
Effective REF Policy Memoranda
Employment Opportunities
FAQs
Find an Attorney
Forms
Help for Homeowners
Identity Theft
Lemon Law Protections
Make a FOIL Request
Offering Plan Data Search
Opinions
Presentation Request Form
Publications
Registrations
Student Lending
Tenants’ Rights
Triple C Awards
Victims’ Rights
Initiatives
Animal Protection Initiative
Conviction Review Bureau
CUFFS
Debt Settlement & Collection
Free Educational Programs
Human Trafficking Initiative
Immigration Services Fraud Initiative
Land Bank Community Revitalization
NY Open Government
Pennies for Charity
Protect Our Homes
Smart Seniors
Office of Special Investigation
Source of Income Discrimination
Taxpayer Protection Initiative
Contact Us
Search
You are here
MoneyGram Repeatedly Failed to Deliver Funds to Loved Ones
Abroad in a Timely Manner, or Provide Timely Refunds

NEW YORK – New York Attorney General Letitia James and the Consumer Financial Protection Bureau (CFPB) today filed a lawsuit against one of the largest international money transfer providers in the nation — MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. (MoneyGram) — for repeatedly violating consumer protection laws. MoneyGram failed to deliver funds to recipients in a timely manner or refund consumers when transfers were delayed. MoneyGram’s unfair practices largely impacted immigrant communities who relied on the company to send money back home to loved ones. The lawsuit alleges that MoneyGram did not accurately notify consumers when their transfers would be available to recipients abroad and failed to implement required policies and procedures designed to help protect consumers, essentially leaving consumers in the dark about their money transfers when something went wrong. Attorney General James and the CFPB’s lawsuit seeks to protect consumers by stopping MoneyGram from continuing its unfair and unlawful practices.
“Our immigrant communities trusted MoneyGram to send their hard-earned money back home to loved ones but MoneyGram let them down,” said Attorney General 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 further harming consumers. New Yorkers can trust that my office will always protect them from unscrupulous companies.”
“MoneyGram spent years failing its customers and failing to follow the law, ignoring customer complaints and government warnings in the process,” said CFPB Director Rohit Chopra. “MoneyGram’s long pattern of misconduct must be halted.”
MoneyGram is a non-bank financial services company that enables consumers to send money, known as remittances, from the United States to more than 200 countries and territories. The company has 430,000 locations in the U.S. and worldwide, and also operates through a digital platform. A significant portion of the company’s money-transfer transactions are initiated by immigrants or refugees in the U.S. sending money back to their native countries. Hundreds of thousands of New Yorkers use MoneyGram every year for millions of transactions. For example, in 2020, more than 600,000 individuals sent and received money at MoneyGram locations in New York over 3.8 million times. People who send remittances are often low-income or facing other financial constraints and are less likely to have extra money to replace delayed money intended for family or other recipients abroad.
MoneyGram violated federal and state consumer protection laws. Specifically, the Office of the Attorney General (OAG) and the CFPB allege that MoneyGram:
MoneyGram is a repeat offender of consumer protection and anti-fraud laws. In 2009, the company agreed to pay $18 million to settle fraud charges brought by the Federal Trade Commission, and was required to implement a comprehensive anti-fraud and agent-monitoring program. In 2012, MoneyGram agreed to forfeit $100 million and enter into a deferred prosecution agreement with the U.S. Department of Justice, admitting it criminally aided and abetted wire fraud and failed to maintain an effective anti-money laundering program. In 2016, MoneyGram agreed to pay $13 million to 48 states, including New York, and the District of Columbia, to compensate defrauded consumers and resolve a multi-state investigation into MoneyGram’s anti-fraud practices. In 2018, MoneyGram agreed to pay $125 million, again to the FTC, to settle allegations that it failed to take steps required under the agency’s 2009 order. According to the FTC, that payment was also part of a global settlement that resolved allegations that MoneyGram violated the 2012 deferred prosecution agreement with the DOJ. In March of 2022, MoneyGram agreed to pay $8.25 million for failing to adequately monitor agents engaging in suspicious transactions to China.
Attorney General James and the CFPB’s lawsuit seeks monetary relief for impacted consumers, an injunction to stop future violations, and imposition of civil money penalties.
This matter was handled by Assistant Attorney General Jason L. Meizlish of the Bureau of Consumer Frauds and Protection, under the supervision of Deputy Bureau Chief Laura J. Levine and Bureau Chief Jane M. Azia. The Consumer Frauds and Protection Bureau is part of the Division of Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and is overseen by First Deputy Attorney General Jennifer Levy.
Translation Disclaimer
© NEW YORK STATE ATTORNEY GENERAL. All rights reserved.
Select a Language Below / Seleccione el Idioma Abajo
Disclaimer
This Google™ translation feature is provided for informational purposes only.
The Office of Attorney General’s website is provided in English. However, the “Google Translate” option may assist you in reading it in other languages.
Google Translate cannot translate all types of documents, and it may not give you an exact translation all the time. Anyone relying on information obtained from Google Translate does so at his or her own risk.
The Office of Attorney General does not make any promises, assurances, or guarantees as to the accuracy of the translations provided. The State of New York, its officers, employees, and/or agents shall not be liable for damages or losses of any kind arising out of, or in connection with, the use or performance of such information, including but not limited to, damages or losses caused by reliance upon the accuracy of any such information, or damages incurred from the viewing, distributing, or copying of such materials.
A copy of this disclaimer can also be found on our Disclaimer page.
Close this box or use the [ X ]

source

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Comment

Your email address will not be published.

JOIN THE CLUB!

It’s easy: all we need is your email & your eternal love. But we’ll settle for your email.