MoneyGram Hit With Penalty For Consumer Practices: AG James

MoneyGram hit with penalty for consumer practices: AG James

Hundreds of thousands of New Yorkers use MoneyGram every year for millions of transactions.

The international financial services company is not a bank but it enables consumers to send money, known as remittances or envíos, to relatives and loved ones abroad from the United States to more than 200 countries and territories. The company has 440,000 locations in the U.S. and worldwide, and also operates through a digital platform.

In April 2022, Attorney General James and the Consumer Financial Protection Bureau (CFPB) 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.

For years, MoneyGram failed to make funds available to its customers on time, quickly resolve errors, or provide accurate information to its customers, in violation of the law.

After CFPB chose to end its participation in the lawsuit, James secured a settlement with MoneyGram requiring it to pay a $250,000 penalty and follow all relevant 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,” said James in a statement. “MoneyGram failed to follow the law for years, sometimes leaving its customers in the dark about where their money went. My office stopped MoneyGram’s illegal behavior and will continue to protect those who rely on MoneyGram to support their families.”

The $250,000 penalty from MoneyGram International, Inc., and MoneyGram Payment Systems, Inc., (MoneyGram) was announced on June 16 and was paid for failing to follow consumer protection laws and jeopardizing their customers’ money transfers.

For additional information or inquiries, visit https://ag.ny.gov or call the Office of the Attorney General’s Help Line at 1-800-771-7755.