The Consumer Financial Protection Bureau (CFPB) has joined the New York Attorney General’s Office in suing MoneyGram for alleged repeated violations of federal law. The CFPB and New York Attorney General are bringing claims against MoneyGram for violations of the Electronic Find Transfer Act and subsequent CFPB remittance rules.
The CFPB has announced formal charges against MoneyGram following repeated warnings from it and the New York Attorney General’s Office. The lawsuit alleges MoneyGram illegally held funds, leaving its customers “stranded” when their money did not arrive on time. It also claims MoneyGram botched instructions to its employees on how to resolve disputes.
“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.”
According to the joint statement from the two agencies, MoneyGram has been subject to repeated enforcement actions due to these offenses.
The complaint seeks monetary relief for harmed consumers, an injunction to stop future violations and imposition of civil money penalties. The complaint is not a final finding or ruling that the defendants have violated the law.