Western Union class action claims company holds customers’ money to earn interest, make investments

Western Union money class action lawsuit overview: 

• Who: Daniel Subkoff filed a class action lawsuit against The Western Union Co. and Western Union Financial Services Inc. 
• Why: Subkoff claims Western Union uses money deposited by its customers for its own financial gain without their consent or permission. 
• Where: The class action lawsuit was filed in Colorado federal court. 

Western Union unlawfully benefits itself by holding and using money from transfers that don’t go through, a new class action alleges.

Plaintiff Daniel Subkoff’s class action lawsuit claims Western Union fails to inform customers that it uses non-transferred money to earn interest and/or make investments for its own financial gain and benefit. 

Subkoff argues further that, in the event the money transfer network does return customers’ funds, it allegedly will not pay them any of the interest it earned and/or any financial gains realized by the company via using the money for holding and investing.

The plaintiff wants to represent a nationwide class of consumers who deposited money through Western Union and whose money was not transferred and who were not paid any interest upon its return, among other similar classes. 

Western Union class action: Company acknowledges it uses customer money without consent

Subkoff argues Western Union has publicly acknowledged through financial statements that it converts untransferred money to its “own use and benefit,” and is “unjustly enriched by use of the customer’s money without permission, consent or authorization by the customer.”

Western Union “benefits financially by holding and using the customer’s money to make money for itself while the customer comes out of the transaction worse off financially because they have been deprived of the use and benefit of their money,” the lawsuit states. 

Subkoff claims Western Union is guilty of breach of fiduciary duty, unjust enrichment, conversion and breach of fiduciary duty, among other things, and of violating consumer protection laws in a number of different states. 

The plaintiff is demanding a jury trial and requesting injunctive and declaratory relief along with an award of exemplary or punitive damages for himself and all class members. 

A consumer filed a separate class action lawsuit against Western Union in 2022 over claims the company failed to make its website accessible to individuals who are blind or visually impaired. 

Have you deposited money with Western Union? Let us know in the comments.

The plaintiff is represented by Robert Radulescu of Romancore Law PC and Robert A. Waller Jr. of the Law Office of Robert A. Waller Jr. 

The Western Union class action lawsuit is Subkoff v. The Western Union Co., et al., Case No. 1:24-cv-00530, in the U.S. District Court for the District of Colorado.

Read About More Class Action Lawsuits & Class Action Settlements:

• Vivid Seats class action claims company fails to disclose fees added to ticket prices
• Four more universities reach settlements in student aid price-fixing class action
• Chipotle class action claims company won’t refund orders paid with gift cards
• Capital One class action claims bank hid new savings account from existing customers