In a recent settlement, MoneyGram International, Inc., a major global money transfer company, agreed to pay $250,000 following actions by the New York Attorney General’s Office for failing to protect consumer rights. According to a press release from the Attorney General’s Office, MoneyGram was accused of delayed fund transfers and inadequate handling of customer refunds, violating consumer protection laws.
The settlement, which Attorney General Letitia James secured, mandates MoneyGram to straighten out its act and duly comply with consumer protection laws - a move that ensures timely fund transfers and refunds for its customers. "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 stated in a press release. The reveal comes after the Consumer Financial Protection Bureau (CFPB) opted out of a joint lawsuit with the OAG against MoneyGram, filed back in April 2022.
The CFPB's decision to withdraw did not exempt MoneyGram from accountability. The company, with a global network of approximately 440,000 locations and an online platform, allegedly neglected compliance with state and federal laws meant to protect consumers. This failure resulted in delays for customers and compromised the transparency necessary to provide confidence for individuals conducting significant transactions.
As part of the settlement, MoneyGram is required to pay $250,000 and ensure all consumer disclosures are clear and accurate. The company must also promptly investigate any processing errors. This comprehensive agreement addresses the areas where MoneyGram previously failed, holding them accountable in a field where strict oversight is essential.
The investigation was primarily conducted by Assistant Attorneys General Laura C. Dismore and Christopher McCall, with contributions from former Assistant Attorney General Jason Meizlish. All members of the Consumer Frauds and Protection Bureau, this team serves on the front lines of the Division for Economic Justice, dedicated to identifying and addressing practices that harm the economic interests of New Yorkers.
