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MoneyGram Payment Systems Inc. will pay $13 million to resolve allegations it transferred money to third parties that defrauded customers, according to a recent announcement by several attorneys general.
The MoneyGram settlement will resolve claims from Washington D.C. and all states except California. The attorneys general from these states reviewed complaints from consumers who used MoneyGram to wire money to third parties who were allegedly involved in fraudulent schemes that caused consumers to suffer financial losses.
MoneyGram, which is based in Dallas, has a global network of around 350,000 locations that allow agents to send and receive money transfers, according to the MoneyGram settlement documents.
The schemes involved third parties who convinced consumers to wire money under false pretenses. For example, the fraudsters would target grandparents and convince them to wire money to pay for a grandchild’s emergency medical care. In other cases, the scammers would entice consumers with promises of romance, business opportunities or foreign lottery winnings. The scammers would take advantage of unsuspecting customers by asking them to wire money to cover fees or to help out with a purported emergency situation.
Under the terms of the proposed deal, MoneyGram will “continue to enhance and maintain a comprehensive and robust anti-fraud compliance program” to protect consumers from fraud. In addition, MoneyGram will improve its consumer complaint process and improve employee trainings.
“MoneyGram and the States are committed to protecting Consumers from fraudulently induced money transfers through a program that includes prominent consumer warnings at locations and platforms offering MoneyGram’s products and services, nationwide consumer education, Agent monitoring, training and remediation of any identified issues, interdictions of high-risk-transfers, and sharing of complaint information with the States,” the MoneyGram settlement documents state.
A portion of the $13 million settlement fund will be used to pay restitution for affected customers who previously filed complaints about fraud-induced money transfers, and who have not already received a payment.
If you or someone acting on your behalf filed a complaint with MoneyGram about a transaction that involved a fraud-induced wire transfer, and you sent the money transfer through a MoneyGram agent based in the United States to a payee located in a different country (except Canada) at any time between July 1, 2008 and Aug. 31, 2009, you may be entitled to restitution from this MoneyGram settlement. California consumers are eligible to receive restitution.
It is expected that eligible consumers will receive a full refund. However, the actual amount each claimant will receive depends on the total number of claims filed and the total dollar amount claimed.
MoneyGram does not admit any liability but agreed to settle the fraud allegations to resolve the concerns of the attorneys general and to provide restitution to affected consumers.
More information about the MoneyGram settlement is available at www.MoneyGramSettlement.com. It is estimated that the Settlement Administrator will contact eligible consumers before June 1, 2016.
Instructions on how to file a claim for the MoneyGram settlement were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.
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18 thoughts onMoneyGram Agrees to $13M Money Transfer Fraud Settlement
2 years ago I was trying to wire 2 transactions of $500 to prepaid cards at Kroger thru Moneygram Transactions equaling a total of $1000. Money never made it to cards and card company has no record of ever receiving it. Called Moneygram over 50 times and got told that once the funds were returnedntonMomeygram I could collect. Its 2 years later and I still have never seen a dime of my missing $1000. Do I qualify?
Kristy Smith
rktsmith1@aol.com
I WAS SCAMMED OUT OF 1000 HOW DO I CLAIM
I was scammed out of more than 5,000 how do I file my claim
I was scammed badly.
I used moneygram to send money to other countries between January 2014 to December 2016 and in return the person was supposed to be coming to the states to live with and marry me and never did. I sent approximately around $15,000. What do i need to do now??
The same happen to me.
I was scammed back on 01-25-2010 out of $3100 under the assumption I was buying a truck. Am I eligible?
I kept all the emails and the money gram complaint #, and a copy of the actual moneygram and receipt
I was scammed under the assumption that I was buying a car. I was asked to use money gram to pay. The money was picked up in Texas I believe. Am I eligible for part of the settlement? I have some of the e-mail’s
Please provide information about the MoneyGram settlement.
Please get back with me aboutMoney Gram Settlement at francinehenry0530@ yahoo.com because for years I was paying $13.00 for my car payment
What about scams where money was sent to Canada? We’ve found all the paperwork my grandparents saved when they were scammed. But it was sent to Canada. I can’t find anything on restitution for Canadian scams.
PLEASE GET BACK TO ME ABOUT NEW LISTING OF MONEYGRAM SETTLEMENT THAT IS NEW DEC.16, 2017-MARCH 31, 2017 AT jacqueline04106@yahoo.com
Please email us your questions at Questions@TopClassActions.com.
I was scammed by someone on Facebook that said I has won a lottery on that site.They got me to wire the money through moneygram. I live in Canada and was wondering if I was eligible to get some of the money back ?
So moving forward is California exempt from the requirement you stated above “MoneyGram and the States are committed to protecting Consumers from fraudulently induced money transfers through a program that includes prominent consumer warnings at locations and platforms offering MoneyGram’s products and services…” ??? I am having a hard time finding any publications or orders that require MoneyGram and it’s agents in California to display any “prominent” consumer warnings at money transfer locations. I am finding that they do not have any warning signs or posters displayed and any application forms that may have once had warnings have been eliminated from use. Please advise.
You should contact your state’s Attorney General’s office with your questions. Good Luck!