Attorney General James Secures $250,000 from MoneyGram for Violating Consumer Protection Laws

NEW YORK – New York Attorney General Letitia James today secured $250,000 from MoneyGram International, Inc., and MoneyGram Payment Systems, Inc., (MoneyGram) for failing to follow consumer protection laws and jeopardizing their customers’ money transfers. MoneyGram is an international money transfer provider that serves hundreds of thousands of customers in the United States every year. In April 2022, Attorney General James and the Consumer Financial Protection Bureau (CFPB) sued MoneyGram for failing to either transfer funds on time or provide timely refunds, and for ignoring its legal requirements to swiftly and accurately investigate errors. After CFPB chose to end its participation in the lawsuit, Attorney General James secured a settlement with MoneyGram requiring it to pay a $250,000 penalty and follow all relevant consumer protection laws.

“New Yorkers who want to send funds to their loved ones abroad should be able to trust that the companies handling their hard-earned money are operating honestly,” said Attorney General James. “MoneyGram failed to follow the law for years, sometimes leaving its customers in the dark about where their money went. My office stopped MoneyGram’s illegal behavior and will continue to protect those who rely on MoneyGram to support their families.” 

MoneyGram is a non-bank financial services company that enables consumers to send money, known as remittances, from the United States to more than 200 countries and territories. The company has 440,000 locations in the U.S. and worldwide, and also operates through a digital platform. Hundreds of thousands of New Yorkers use MoneyGram every year for millions of transactions.

The Office of the Attorney General (OAG) and CFPB sued MoneyGram in April 2022, alleging that MoneyGram violated state and federal laws meant to protect its customers. For years, MoneyGram failed to make funds available to its customers on time, quickly resolve errors, or provide accurate information to its customers, in violation of the law.

The settlement with OAG ensures that MoneyGram does not escape accountability for its illegal actions impacting New Yorkers, despite CFPB’s decision to withdraw from the lawsuit. The settlement requires MoneyGram to comply with consumer protection laws by transferring funds and processing refunds on time. It also requires MoneyGram to ensure that disclosures to consumers are accurate and to investigate errors in a timely fashion. In addition, MoneyGram is prohibited from providing money senders with inaccurate disclosures and telling consumers that they are not liable for errors. In addition to complying with the law, MoneyGram must pay a penalty of $250,000.

This case was handled by Assistant Attorneys General Laura C. Dismore and Christopher McCall and former Assistant Attorney General Jason Meizlish of the Consumer Frauds and Protection Bureau. The Consumer Frauds and Protection Bureau is led by Bureau Chief Jane Azia and Deputy Bureau Chief Laura Levine and is part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.