MoneyGram Settles $250,000 New York Consumer Transfer Violations

MoneyGram International has agreed to pay a $250,000 settlement to resolve allegations brought by New York Attorney General Letitia James that the company violated consumer protection laws by delaying fund transfers, failing to provide timely refunds, and inadequately addressing customer complaints. The lawsuit, originally filed in April 2022 alongside the Consumer Financial Protection Bureau (CFPB), accused MoneyGram of violating a 2013 federal rule meant to improve remittance transfers to recipients abroad. Despite the CFPB withdrawing from the case under new leadership, New York pursued the matter independently to ensure accountability. MoneyGram did not admit wrongdoing but agreed to improve transparency by providing clear disclosures about error investigations and clarifying customer liabilities. The company, which operates a vast global network and was acquired by private equity firm Madison Dearborn Partners in 2023, faces ongoing scrutiny to comply with consumer protection laws and restore trust for customers sending money internationally. Attorney General James emphasized the importance of honest operations for companies handling consumers' hard-earned money.