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MoneyGram Faces A Lawsuit In The United States

MoneyGram is one of the biggest money transfer providers in the world. However, the company is also subject to a lawsuit by the Consumer Financial Protection Bureau and New York Attorney General. The remittance firm has mistreated some people, warranting legal action. 

MoneyGram Is In A Pickle

It is very easy to file a lawsuit in the United States. Sometimes, that is a good thing, but otherwise, it creates much unnecessary hassle. It remains unclear what the outcome will be for MoneyGram, but the company is not amused. Instead, they claim it is a “baseless” lawsuit filed by the CFPB and NYAG. However, the documents mention MoneyGram may have repeatedly violated consumer financial protection laws.

More specifically, the Consumer Financial Protection Bureau claims the firm stranded customers waiting for their money. Allegedly, MoneyGram engaged in keeping funds in limbo for several days without a specific or valid reason. As it is not the first case this has happened, a lawsuit is a logical outcome. 

Furthermore, MoneyGram allegedly “botched” instructions to employees regarding dispute resolution and neglected to document policies and procedures. These are serious allegations, although they need to be backed up by solid evidence. That may prove a bit trickier than expected, as MoneyGram’s team will “vigorously defend itself and expose the meritless claims.”

CFPB Director Rohit Chopra comments:

“MoneyGram spent years failing its customeras and failing to follow the law, ignoring customer complaints and government warnings in the process. MoneyGram’s long pattern of misconduct must be halted.”