Remittance Transfer Providers Settle with CFPB over Alleged Transfer Rule Violations

  • The Consumer Financial Protection Bureau (“CFPB”) reached a settlement with remittance transfer providers Trans-Fast Remittance LLC (“Trans-Fast”) and international money-transfer services Sigue Corporation and its subsidiaries (collectively, “Sigue”) to resolve allegations that they violated the Electronic Fund Transfer Act and the Remittance Transfer Rule, and that Trans-Fast violated the Dodd-Frank Wall Street Reform and Consumer Protection Act.
  • The consent order against Trans-Fast alleges that Trans-Fast failed to adhere to error resolution requirements, did not properly respond to cancellation requests, failed to issue refunds, provided about 40 million consumer disclosures that violated the Remittance Transfer Rule, and made misleading statements about the speed of its remittance transfers in its advertising, among other things.
  • The consent order against Sigue alleges that Sigue failed to appropriately refund transaction fees and failed to inform consumers of the remedies available for remittance errors, and failed to develop and maintain adequate written policies and procedures to ensure compliance with error-resolution requirements, among other things.
  • Under the terms of the consent orders, Trans-Fast must pay $1.6 million in civil penalties; Sigue must reserve approximately $100,000 for consumer redress and pay $300,000 in civil penalties; and both entities must implement compliance measures, among other things.