MoneyGram Fined $250K for Violating Consumer Protection Laws

New York – In a landmark move against financial malpractice, New York Attorney General Letitia James has secured a $250,000 settlement from MoneyGram International, Inc., and MoneyGram Payment Systems, Inc. (collectively, ‘MoneyGram’) for flagrant violations of consumer protection laws.

The AG’s office alleged that MoneyGram failed to transfer funds on time or provide timely refunds, and ignored its legal obligations to promptly investigate errors, leaving countless customers in the dark about their money transfers. This settlement marks a significant victory for New York consumers who rely on MoneyGram’s services for international remittances.

“New Yorkers deserve to trust that companies handling their hard-earned money are operating with integrity,” said Attorney General James. “MoneyGram’s years-long neglect of its legal duties has been unacceptable, and my office will not stand by as they continue to harm vulnerable communities.”

Attorney General James initially joined forces with the Consumer Financial Protection Bureau (CFPB) in a lawsuit against MoneyGram for these violations. Although the CFPB later withdrew from the case, AG James persisted and won this significant penalty.

MoneyGram, a non-bank financial services company with a vast network of 440,000 locations globally, has been accused of repeatedly failing to honor its commitments to customers. This settlement ensures that MoneyGram is held accountable for its past misdeeds and requires the company to comply strictly with consumer protection laws in future transactions.

The $250,000 penalty will be used to compensate affected consumers and deter similar misconduct within the industry. Assistant Attorneys General Laura C. Dismore, Christopher McCall, and former Assistant Attorney General Jason Meizlish were instrumental in this case, led by Bureau Chief Jane Azia and Deputy Bureau Chief Laura Levine of the Consumer Frauds and Protection Bureau.