Western Union Class Action Says Wire Transfers Aren’t Delivered

A class action lawsuit claims that Western Union doesn’t redeem money that has been sent in an unsuccessful wire transfer.

Plaintiff Ibolya Radulescu says that for several years she has used Western Union to transfer money to relatives in Romania. Allegedly, she sent various funds this way, including a $100 transfer sent on April 11, 2013.

The plaintiff reportedly sent the payments via Western Union’s money transfer service, and was charged various dollar amounts for each transfer.

Radulescu says Western Union did not deliver the money from the transfer sent on April 11, 2013, and instead kept the money. In addition, she alleges that Western Union did not return the money, did not notify her that the transfer did not go through, and did not notify her until years later that the bank was still in possession of her money.

The Western Union money transfer class action lawsuit states that in August 2018, Western Union made its first effort to contact her about the funds. Allegedly, the letter stated that as required by law, the company would turn over her unredeemed funds to the State’s Treasurer’s Office as unclaimed property unless the bank received a written response within a certain time period.

The Western Union class action lawsuit goes on to claim that Western Union was wrongly making money off of Radulescu’s fund, because the bank had used it for investments, from which the company made money. Allegedly, the bank did not acknowledge why Radulescu’s funds had been held without her knowledge.

Radulescu further states that Western Union makes a widespread practice of holding transferred funds without delivering them and without returning them to customers, noting that during the same time period in question, Western Union was hit with another lawsuit over the same issue.

The plaintiff points to this other wire transfer lawsuit to claim that Western Union knows that it is holding funds without customers consent, and has not changed its practices, at least through August 2018.

The Western Union wire transfer class action lawsuit says that Western Union touts its large financial holdings as a reason why customers should bank with Western Union.

However, Radulescu claims that these holdings were at least in part gained unfairly by holding funds of its customers that should have been sent to others via wire transfer.

The Western Union class action lawsuit states that Western Union takes advantage of its vulnerable clientele, who are largely immigrants or others who have limited access to other financial institutions. Allegedly, Western Union knows these customers who do not have other resources are vulnerable and exploits them by not sending their money to intended recipients.

Radulescu seeks damages on behalf of herself and all other similarly affected customers.

Have you had a wire transfer through Western Union fail? Let us know in the comments below.

Radulescu is represented by Robert Radulescu of Romancore Law PC and Robert A. Waller, Jr. of Law Office of Robert A. Waller, Jr.

The Western Union Wire Transfer Class Action Lawsuit is Ibolya Radulescu v. The Western Union Company, et al., Case No. 1:19-cv-03009, in the U.S. District Court for the District of Colorado.

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