MoneyGram sued by U.S., New York regulators over remittance transfers (updated)

MoneyGram International

21/04/2022 16:44

(Adds details from complaint, share price, pending acquisition)
    NEW YORK, April 21 (Reuters) - MoneyGram International Inc
 MGI.O , one of the largest U.S. providers of remittance
transfers, was sued on Thursday by two regulators for repeatedly
violating a federal rule designed to make the transfers more
transparent and less risky.
    In a complaint filed in Manhattan federal court, the U.S.
Consumer Financial Protection Bureau and New York Attorney
General Letitia James said MoneyGram has repeatedly given
senders inaccurate information about when transferred money
would be available to recipients abroad.
    The regulators also said MoneyGram has repeatedly failed to
properly address customer complaints in accordance with the 2013
rule.
    In morning trading, MoneyGram shares were down 83 cents, or
7.8%, at $9.82.
    MoneyGram did not immediately respond to a request for
comment. The Dallas-based company agreed in February to be
acquired by private equity firm Madison Dearborn Partners in a
$1.8 billion transaction.  urn:newsml:reuters.com:*:nL4N2UQ3Q6
    Remittance transfers let people in the United States send
money electronically to friends and family in other countries,
and exceed $100 billion annually.
    The CFPB said it has previously examined MoneyGram's
remittance transfer procedures and directed it to fix problems.
"But MoneyGram's violations continued," the complaint said.
    Thursday's lawsuit seeks unspecified refunds, restitution
and civil damages, among other remedies.

 (Reporting by Jonathan Stempel in New York
Editing by Paul Simao)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))