MoneyGram International, Inc. and MoneyGram Payment Systems, Inc.
On April 21, 2022, the Bureau filed a lawsuit jointly with the Attorney General of New York against MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. (collectively, MoneyGram), nonbank remittance transfer providers headquartered in Dallas, Texas. The Bureau filed an amended complaint on July 5, 2022. The Bureau alleges that defendants violated the Remittance Transfer Rule and Regulation E, which implements the Electronic Fund Transfer Act (EFTA) by failing to disclose accurate fund availability dates, failing to investigate noticed errors promptly, failing to timely report the results of its error investigations to consumers, failing to provide a written explanation of its findings to consumers, failing to notify senders of their right to request documents related to their investigation, failing to provide fee refunds when required to remedy errors, failing to develop and maintain sufficient error resolution policies and procedures, and failing to sufficiently address retention of documents showing its compliance with the Remittance Transfer Rule and EFTA. The Bureau also alleges that MoneyGram engaged in unfair acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA) by failing to promptly send payments or make refunds. The violations of the Remittance Transfer Rule also constituted violations of the CFPA. The Bureau seeks redress to consumers, disgorgement, appropriate injunctive relief, and the imposition of civil money penalties.