New York Attorney General Letitia James says she has collaborated with the Consumer Financial Protection Bureau (CFPB) in filing a lawsuit against one of the largest international money transfer providers in the United States, MoneyGram International, Inc. and MoneyGram Payment Systems, Inc (MoneyGram) for allegedly repeatedly failing to transmit money to the Caribbean and other recipients in a timely manner.
“MoneyGram failed to deliver funds to recipients in a timely manner or refund consumers when transfers were delayed,” she said.
“MoneyGram’s unfair practices largely impacted immigrant communities, who relied on the company to send money back home to loved ones,” she added.
The lawsuit alleges that MoneyGram did not accurately notify consumers when their transfers would be available to recipients abroad, and failed to implement required policies and procedures designed to help protect consumers, “essentially leaving consumers in the dark about their money transfers when something went wrong.”
The lawsuit seeks to protect consumers by stopping MoneyGram from continuing its “unfair and unlawful practices”.
