On June 16, 2025, the New York Attorney General announced it had entered into a stipulated final judgment to settle its suit against a non-bank money transfer provider over alleged violations of federal and state consumer protection laws related to remittance transfers.
The lawsuit alleged the company provided inaccurate disclosures about when funds would be available, delayed transfers and refunds even after internal clearance, and failed to properly investigate and resolve consumer complaints in violation of §§ 1031(a), 1036(a)(1), 1042, 1054, and 1055 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 5536(a)(1), 5552, 5564, 5565; the Electronic Fund Transfer Act (EFTA), 15 U.S.C. § 1693 et seq., and its implementing Regulation E, 12 C.F.R. pt. 1005 (which includes the Remittance Rule); and New York Executive Law (N.Y. Exec. Law) § 63(12). The lawsuit also alleged the company lacked adequate compliance procedures, failed to retain required documentation, and engaged in unfair practices by unnecessarily delaying transactions.
Under the stipulated final judgment, the company is required to implement and maintain policies and procedures to support compliance, including systems to identify and address consumer complaints and notices of error. The company agreed to establish a compliance-management system, conduct regular training for employees and agents involved in remittance services, and ensure that all consumer-facing terms and conditions are legally compliant.
In addition to these obligations, the company agreed to pay a $250,000 civil money penalty.
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