February 12 2016
An agreement has been reached between 49 states and The District of Columbia (“the Participating States”)* to resolve the Participating States’ Attorneys General investigation of MoneyGram’s Money Transfer services. In particular, the States reviewed complaints of consumers who used MoneyGram’s wire transfer service to send money to third parties who were involved in schemes to defraud consumers and also reviewed MoneyGram’s efforts to maintain effective anti-fraud measures to prevent consumers from suffering financial losses as a result of these fraud induced money transfers.
The States’ settlement provides that restitution payments will be made to eligible consumers. Eligible consumers are those who previously filed complaints with MoneyGram, related to fraud induced money transfers sent from a MoneyGram agent in the United States to a recipient located in a foreign country (other than Canada) between July 1, 2008 and August 31, 2009 and have not already received payment. An independent third party settlement administrator (KCC Gilardi) has been appointed and will be mailing notices to eligible consumers before June 2016, containing further instructions on how to receive a restitution payment.