Customer's money transfers were jeopardizes, New York charged
of ConsumerAffairsJune 16, 2025
New York Attorney General Letitia James secured $250,000 from MoneyGram International for failing to follow consumer protection laws and jeopardizing customers’ money transfers
The settlement requires MoneyGram to comply with consumer protection laws, including transferring funds and processing refunds on time, after years of violations
MoneyGram serves millions of customers annually through 440,000 locations worldwide and a digital platform for international money transfers
New York Attorney General Letitia James today announced a $250,000 settlement with MoneyGram International, Inc., and MoneyGram Payment Systems, Inc., resolving allegations that the international money transfer company violated consumer protection laws and put customers’ financial transactions at risk.
The settlement stems from a lawsuit filed in April 2022 by James and the Consumer Financial Protection Bureau (CFPB) against MoneyGram for repeatedly failing to transfer funds on time, provide timely refunds, and properly investigate customer errors. After the CFPB withdrew from the case, James continued pursuing the matter independently.
“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,” James said. “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.”
A non-bank finsec
MoneyGram operates as a non-bank financial services company that enables consumers to send remittances from the United States to more than 200 countries and territories. The company maintains 440,000 locations globally and serves hundreds of thousands of New York customers annually through millions of transactions.
The Consumer Financial Protection Bureau had recently announced new rules to provide more guardrails for non-bank companies but the Trump Administration has derailed that effort.
According to the attorney general’s office, MoneyGram violated state and federal consumer protection laws for years by failing to make funds available to customers on time, quickly resolve transaction errors, or provide accurate information to consumers about their transfers.
Under the settlement terms, MoneyGram must comply with all relevant consumer protection laws, including ensuring timely fund transfers and refund processing. The company is also required to provide accurate disclosures to consumers and investigate errors promptly. Additionally, MoneyGram is prohibited from giving customers inaccurate information about transactions or falsely telling them they are not liable for errors.
Beyond the compliance requirements, MoneyGram must pay the $250,000 penalty to resolve the matter.
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