MoneyGram settles NY AG lawsuit

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter.
MoneyGram International agreed to pay a $250,000 civil penalty and to submit to a three-year period of compliance monitoring to settle New York Attorney General allegations that it mishandled consumers' remittance transfers, violating federal consumer protection laws. As part of the settlement approved Monday by a federal judge, the AG also cited MoneyGram for failing to investigate errors and complaints.
The settlement resolves an April 2022 civil lawsuit filed in federal court in New York City by the state and Consumer Financial Protection Bureau, which withdrew as a plaintiff in April 2025. 'MoneyGram failed to follow the law for years, sometimes leaving its customers in the dark about where their money went,' New York Attorney General Letitia James said Monday in a press release.
'We are pleased to bring full closure to this legacy matter, which dates back years and involved no harm to consumers,' MoneyGram General Counsel Cory Feinberg said in a statement emailed by the company. Dallas-based MoneyGram did not admit nor deny the lawsuit allegations as part of the settlement.
New York and the CFPB sued MoneyGram over alleged violations of the Remittance Transfer Rule, which the federal agency implemented in October 2013 for remittance transfers. Such remittances are typically made by people sending funds to family members or friends in another country.
In April, U.S. District Judge Katherine Polk Failla granted the bureau's request to withdraw as a plaintiff in the lawsuit, one of several enforcement actions the federal agency abandoned this year under Acting Director Russell Vought as he seeks to reduce the CFPB's mission and staffing.
The rule – stemming from the 2010 Consumer Financial Protection Act – required that consumers receive more information about the pricing and timing of their transfers, and offered remedies for transfer errors, along with new recordkeeping mandates.
MoneyGram also failed to 'timely make remittance transfers available to recipients or to timely make refunds available to senders' and 'unnecessarily delayed transactions,' according to the complaint. The rule requires money transmitters to investigate consumer complaints about errors and determine within 90 days whether an error has occurred.
Since 2015, MoneyGram said it has invested about $800 million to improve its system and processes.
MoneyGram says its cross-border payment network handles money transfers in about 200 countries and 450,000 retail locations, processing around $200 billion annually.
In June 2023, private equity firm Madison Dearborn Partners completed a $1.8 billion acquisition of MoneyGram. Since his appointment as CEO last year, Anthony Soohoo has been pursuing a digital overhaul of the company that has been in business for 80-plus years.
Recommended Reading
MoneyGram CEO targets digital remake

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Yahoo

32 minutes ago

• Yahoo

Fabletics Elevates Key Leaders as It Eyes $1 Billion Milestone

Fabletics has announced two key executive leadership Bhatia, who previously served as chief operating officer, has been elevated to president and COO. She has driven initiatives across e-commerce, production, operations and technology, while leading the brand's expansion into new channels. Her role now spans product creation, retail, wholesale and international Gomez, formerly senior vice president of brand marketing, is now chief marketing officer. She will lead all brand, digital innovation and customer engagement initiatives. According to Fabletics, Gomez has been leveraging customer insights to inform impactful marketing in 2013 and headquartered in El Segundo, Calif., the activewear brand operates on a membership-based model rooted in e-commerce and supported by a growing number of retail stores. Owned by TechStyle Fashion Group, Fabletics is on track to exceed $1 billion in revenue, according to Adam Goldenberg, Fabletics' cofounder and chief executive officer. He, Bhatia and Gomez have worked closely to guide the company's growth.'We're introducing new store formats and pursuing plans for international expansion — all while continuing to deliver the innovative partnerships and best-in-class product we are known for,' said Goldenberg in a statement. 'We are thrilled to have Meera and Carly expand their roles and position us for continued success.''I am honored to assume the roles of president and COO at Fabletics during a time of immense growth and international expansion,' said Bhatia. 'Fabletics is a driving force in an evolving activewear industry, leading from design, product, technology and community. I look forward to helping lead the brand to new heights in my new role.''I joined Fabletics last year because I believe it is at the cutting edge of customer engagement, and is truly reinventing the activewear space,' said Gomez. 'Stepping into the CMO role, I am excited to unlock new ways of elevating our brand and delivering an impactful customer experience that propels Fabletics forward in this next chapter.' More from WWD David Beckham Launches Beeup, Honey Fruit Gummies, With Shaun Neff Tracy Anderson Introduces New Studio Concept in Santa Monica: Privé Kathy Gohari Named President of Rodeo Drive Committee Best of WWD Kate Middleton's Looks at Trooping the Colour Through the Years [PHOTOS] Young Brooke Shields' Style Evolution, Archive Photos: From Runway Modeling & Red Carpets to Meeting Princess Diana The Most Memorable French Open Tennis Outfits With Serena Williams, Naomi Osaka & More [PHOTOS]

Wall Street Journal

35 minutes ago

• Wall Street Journal

Salesforce Not Taking Survival for Granted in AI Era, Top Strategist Says

Salesforce CRM -1.08%decrease; red down pointing triangle is a giant in its field, but Peter Schwartz, one of its top strategists, isn't taking survival for granted in the era of artificial intelligence. The unprecedented pace of change brought by AI is forcing the software maker to reinvent itself, or risk being put out of business, said Schwartz, chief futures officer of Salesforce.

CBS News

36 minutes ago

• CBS News

Colorado sheriff ousted as Jackson County prepares for North Park Fair

Jackson County Sheriff Jarrod Poley has been recalled by his community several years after being sworn in as sheriff of the rural Colorado mountain community. Jackson County, which is roughly 1,600 square miles in size, is home to around 1,400 residents. CBS On Tuesday night after months of a public push for a recall vote, Poley was ordered by the voters to return his badge by June 26. The recall comes after some in the community accused Poley of failing to prioritize the safety of students at North Park High School, also accusing him of improperly arresting the school's principal on school grounds during school hours. "The community voted to determine if they would keep the sheriff in his position as the sheriff or recall him," said Coby Corkle, a Jackson County commissioner. In his rebuttal, Poley disputed the accusations in the petition and said he tried to always keep students safe while investigating all tips. CBS Colorado attempted to reach Poley by email; however, his account issued an automated response claiming he had retired. "Small town politics can be difficult. I think Sheriff Poley should have been given the opportunity to finish his term, which was about a year and a half," Corkle said. "Obviously, the community didn't feel the same. This was a community-led initiative." Some residents who wished not to be identified told CBS Colorado they felt a change in leadership in the office was overdue. Some resident who supported the sheriff being replaced said even showing their support had been viewed as somewhat controversial in the town of Walden. However, signs throughout the community were seen supporting Poley being replaced by candidate Dustin "Dusty" Weber, a former deputy who was running unopposed to replace Poley. Some raised concerns that the sheriff had allegedly gone missing from his duties since the Tuesday night vote. When CBS Colorado went to the sheriff's office to try and speak with staff, the door was locked during regular business hours, and nobody answered when a doorbell was activated. The day prior, a sign had been hung at the sheriff's office saying the office was no longer open to the public. "Jarrod Poley is still the acting sheriff," Corkle explained. "I believe he is transitioning himself out." Corkle said 911 calls were still being answered by dispatchers. Deputies were still responding to calls, and he also added that he felt the community was safe. Corkle speculated that the closure of the office during the transition was simply confined to pausing administrative actions and walk-ins like for those seeking to obtain their conceal carry license. Corkle said he has been in contact with both Pokey and Weber in recent days and is confident that residents and visitors will be safe and cared for. He also said multiple agencies in the region have also offered their support, especially as the community prepares to welcome thousands for the 75th annual North Park Fair. "Jarrod did some good things for this community, I hope (residents) remember that. I understand there are some things he did that the community is not happy with, and he is suffering the consequences of that," Corkle said. "Our job is to find a solution and move forward. I think Dustin Weber will be a good sheriff. We want to make sure he has the resources to be successful, and we want to make sure the community is taken care of. Public safety is not something you want to short change."