The Consumer Financial Protection Bureau (CFPB) and New York Attorney General Letitia James have outlined a legal complaint against MoneyGram International, Inc. and MoneyGram Payment Systems, Inc.
The lawsuit alleges MoneyGram stranded customers waiting for their money when it failed to deliver funds promptly to recipients abroad.
“MoneyGram spent years failing its customers and failing to follow the law, ignoring customer complaints and government warnings in the process,” CFPB Director Rohit Chopra said. “MoneyGram’s long pattern of misconduct must be halted.”
A notable portion of MoneyGram’s money-transfer transactions are initiated by immigrants or refugees in the United States sending money to their native nations. The company operates in over 200 countries and territories while serving 47 million customers last year.
“Our immigrant communities trusted MoneyGram to send their hard-earned money back home to loved ones, but MoneyGram let them down,” New York Attorney General Letitia James said. “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. We are suing MoneyGram to correct their unlawful practices and prevent them from harming consumers. New Yorkers can trust that my office will protect them from unscrupulous companies.”
The complaint seeks monetary relief for harmed consumers, an injunction to stop future violations, and imposition of civil money penalties. Authorities also noted the complaint is not a final finding or ruling that the defendants have violated the law.