Latest news with #MoneyGram
Yahoo
a day ago
- Business
- Yahoo
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
Finextra
2 days ago
- Business
- Finextra
Paddle to pay $5m to settle FTC tech support scam claims
UK Fintech Paddle will pay $5 million to settle US allegations of unfair payment processing practices. 0 The firm will also be permanently banned from processing payments for tech-support telemarketers, says the Federal Trade Commission. The FTC complaint alleged that Paddle processed payments for deceptive tech-support schemes that targeted US consumers, including older adults. The payments processor was accused of abusing the credit-card system and enabling deceptive foreign operators to access it, costing consumers millions of dollars. Christopher Mufarrige, director, FTC Bureau of Consumer Protection, says: 'The FTC will hold accountable payment companies that knowingly facilitate payments for scammers or look the other way when faced with red flags about their clients' conduct.' Separately, MoneyGram will pay a $250,000 fine to settle a New York state lawsuit over claims it violated a federal rule designed to make it easier to send remittances. The settlement comes shortly after the Consumer Financial Protection Bureau withdrew from the civil case amid its ongoing pullback from enforcement activity.
Arab News
3 days ago
- Business
- Arab News
Saudi digital wallet tiqmo partners with MoneyGram
MoneyGram, a global payments network for consumers, businesses and communities, has announced a partnership with tiqmo, a Saudi mobile payment service provider. Through this partnership, tiqmo users across Saudi Arabia can now transfer money to more than 200 countries and territories via the global MoneyGram network. With this integration, tiqmo customers will gain access to more than 5 billion digital endpoints and over 480,000 MoneyGram locations worldwide, supporting send and receive options in over 120 currencies. Additionally, tiqmo provides a range of international financial services including bank account transfers, digital wallet transfers, cash pick-up, bill payments and mobile top-ups. tiqmo is one of the fastest-growing apps in Saudi Arabia, licensed by the Saudi Central Bank. Since its launch in 2024, tiqmo has rapidly established itself as a leading digital wallet in Saudi Arabia, and across the Middle East and North Africa region. Trusted by millions of users, tiqmo selected MoneyGram as its cross-border payments partner due to the breadth of its extensive global reach, trusted infrastructure and strong footprint in Saudi Arabia — one of the world's largest remittance markets. 'We believe that our partnership with MoneyGram will strengthen tiqmo's portfolio of international financial services and connect our customers with a payment brand known around the world,' said Abdulaziz Al-Ajlan, managing director at tiqmo. 'In line with Vision 2030 and the Kingdom's digital transformation objectives and in pursuit of our goal to redefine digital financial services, we are delighted to welcome MoneyGram into our world-class digital payments ecosystem for the MENA financial services and marketplace.' 'This partnership reflects MoneyGram's leadership in enabling digital cross-border payments and advancing financial inclusion across the region,' said Ahmed Aly, head of Middle East, South Asia and Asia Pacific at MoneyGram. 'By expanding our digital network through this collaboration with tiqmo — one of the Kingdom's most innovative and fast-growing wallets — we are reinforcing our role as a key enabler of remittance innovation and supporting Saudi Arabia's Vision 2030 toward a more inclusive and digitally empowered financial ecosystem.' According to the World Bank, Saudia Arabia was the second largest sender of remittances in 2022, with more than $39 billion flowing abroad. This new service is expected to benefit customers sending money to top recipient countries, such India, Pakistan, Bangladesh, the Philippines, Egypt, Indonesia and Nepal.
Reuters
3 days ago
- Business
- Reuters
MoneyGram settles with New York over money transfers after US CFPB quits case
NEW YORK, June 16 (Reuters) - MoneyGram agreed to pay a $250,000 fine to settle a New York state lawsuit over its remittance transfers, two months after the U.S. Consumer Financial Protection Bureau withdrew from the civil case. The accord announced on Monday by New York Attorney General Letitia James resolves claims that MoneyGram repeatedly violated a 2013 federal rule designed to make it easier for people to send money to friends and family outside the country. Remittance transfers let people in the United States send money electronically to people in other countries. In the April 2022 lawsuit, James said MoneyGram repeatedly let recipients wait too long for their money, kept senders in the dark about when transfers would be made, and failed to properly address complaints. MoneyGram did not admit or deny wrongdoing in agreeing to the settlement, which was filed in federal court in Manhattan. The settlement also requires clear disclosures about how MoneyGram investigates errors and that customers are not liable. Dallas-based MoneyGram was purchased in 2023 by private equity firm Madison Dearborn Partners. '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. In announcing its April 7 withdrawal from the case, the CFPB said its new leadership "provided the direction" and that its decision was supported by "principles of justice and fairness." The CFPB since January has abandoned much of its enforcement activity as the Trump administration tries to gut the agency, including by firing most employees.
Yahoo
3 days ago
- Business
- Yahoo
MoneyGram settles with New York over money transfers after US CFPB quits case
By Jonathan Stempel NEW YORK (Reuters) -MoneyGram agreed to pay a $250,000 fine to settle a New York state lawsuit over its remittance transfers, two months after the U.S. Consumer Financial Protection Bureau withdrew from the civil case. The accord announced on Monday by New York Attorney General Letitia James resolves claims that MoneyGram repeatedly violated a 2013 federal rule designed to make it easier for people to send money to friends and family outside the country. Remittance transfers let people in the United States send money electronically to people in other countries. In the April 2022 lawsuit, James said MoneyGram repeatedly let recipients wait too long for their money, kept senders in the dark about when transfers would be made, and failed to properly address complaints. MoneyGram did not admit or deny wrongdoing in agreeing to the settlement, which was filed in federal court in Manhattan. The settlement also requires clear disclosures about how MoneyGram investigates errors and that customers are not liable. Dallas-based MoneyGram was purchased in 2023 by private equity firm Madison Dearborn Partners. '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. In announcing its April 7 withdrawal from the case, the CFPB said its new leadership "provided the direction" and that its decision was supported by "principles of justice and fairness." The CFPB since January has abandoned much of its enforcement activity as the Trump administration tries to gut the agency, including by firing most employees. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
