Sigue Corporation, SGS Corporation, and GroupEx Corporation
On August 31, 2020, the Bureau issued a consent order against Sigue Corporation and its subsidiaries, SGS Corporation and GroupEx Corporation, which are all headquartered in Sylmar, California and provide consumers with international money-transfer services, including remittance-transfer services. Sigue and its subsidiaries have a distribution network with over 200,000 send-and-receive locations, offices in 18 countries, and operations in all 50 states. Sigue and its subsidiaries provide remittance transfers to consumers using their retail branches and a network of agents, including convenience stores, supermarkets, and other retail establishments. The Bureau found that Sigue and its subsidiaries violated the Electronic Fund Transfer Act and the Remittance Transfer Rule by failing to provide numerous required disclosures. In some cases involving money-transfer errors, consumers were entitled to notice that a fee refund was available, and Sigue, SGS, and GroupEX failed to notify consumers that they were entitled to refunds. The consent order requires Sigue and its subsidiaries to reserve about $100,000 for redress to consumers and pay a $300,000 civil money penalty. Sigue and its subsidiaries also must implement and maintain written policies and procedures and a compliance-management system that are designed to ensure compliance with the Remittance Transfer Rule.
Consumer Financial Protection Bureau Settles with Remittance Transfer Providers for Remittance Transfer Rule Violations