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MoneyGram Sued by New York, CFPB for Unfair Practices

  • Lawsuit alleges frequent delays to money transfers abroad
  • Company says compliance is ‘robust,’ sees no evidence of harm
Updated on

MoneyGram International Inc. was accused by New York state and the U.S. Consumer Financial Protection Bureau of harming customers by delaying international money transfers and failing to disclose prices and when the funds would arrive.

Dallas-based MoneyGram, one of the world’s largest providers of money transfers, has failed to deliver funds or issue refunds promptly, stranding customers who are waiting for the cash, New York and the CFPB said in a complaint filed Thursday in Manhattan federal court. U.S. remittances abroad total more than $100 billion annually, they said.