Global money transfer company MoneyGram is getting ready to fight a civil lawsuit filed by the director of the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NYAG) that alleges it failed to provide money to overseas recipients in a timely manner, according to a Friday (April 22) press release.
MoneyGram said in the release that it’s “deeply disappointed” both the CFPB and NYAG filed a “meritless lawsuit” and further that the CFPB issued press releases with “inaccurate statements” about MoneyGram and the case.
The payments firm said in the release it is fully prepared to “vigorously defend itself” and plans to “expose the meritless nature of the lawsuit in court.”
See also: CFPB and New York AG Sue MoneyGram
The lawsuit, which was filed in the U.S. District Court for the Southern District of New York, stated that as one of the biggest international money transfer firms in the U.S., MoneyGram engaged in unfair practices that “largely impacted immigrant communities who relied on the company to send money back home to loved ones,” according to a press release issued by New York Attorney General Letitia James’ office.
“MoneyGram is a nonbank financial services company that enables consumers to send money, known as remittances, from the United States to more than 200 countries and territories,” the release stated. “The company has 430,000 locations in the U.S. and worldwide, and also operates through a digital platform.”
The lawsuit seeks monetary relief for impacted consumers, an injunction to stop future violations, and the imposition of civil money penalties.
The allegation comes as MoneyGram is set to be acquired by private equity firm Madison Dearborn Partners (MDP) in an all-cash purchase of outstanding MoneyGram shares worth approximately $1.8 billion.
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