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James and the CFPB Sue Moneygram over Consumer Protection and Anti-Fraud Allegations

  • New York AG Letitia James and the CFPB sued Moneygram International, Inc. and Moneygram Payment Systems, Inc. (collectively “Moneygram”) over alleged violations of consumer protection laws, including the Consumer Financial Protection Act, the Electronic Fund Transfer Act, the Remittance Rule, and New York Executive Law 63(12) prohibiting fraudulent and illegal acts.
  • The complaint alleges that, between 2013 and early 2022, Moneygram repeatedly failed to disclose to customers dates upon which transferred funds would be available and failed to satisfy the Remittance Rule by, among other things, failing to promptly investigate errors, failing to timely report results of investigations to consumers, failing to provide written explanations of findings, and failing to provide fee refunds for errors. Moneygram also allegedly failed to maintain appropriate policies and procedures to ensure identification of errors and failed to adequately retain records.
  • The complaint requests injunctive relief, monetary relief, including refunds of moneys paid by customers, compensation for unjust enrichment and payment of damages, and civil penalties. Moneygram previously settled allegations of consumer protection and anti-fraud violations with the FTC in 2009, with the DOJ in 2012, with a nationwide coalition of AGs in 2016 and with the FTC in 2018.