CFPB Exits MoneyGram Remittance Suit but New York AG Remains (1)

The Consumer Financial Protection Bureau dropped its case against MoneyGram International Inc., but the money transmitter must still face New York’s claims that it delayed transfers and left customers in the dark.

The CFPB and New York Attorney General Letitia James (D) sued MoneyGram in the US District Court for the Southern District of New York in April 2022 alleging the company stranded customers who were waiting for cash by delaying transfers and refunds.

MoneyGram, one of the largest remittance providers in the US, also repeatedly failed to make adequate disclosures about when transferred funds would arrive, the complaint ...