MoneyGram has agreed to pay a $250,000 fine to settle a lawsuit brought by the New York Attorney General over remittance transfer practices.
The settlement, announced Monday, comes two months after the U.S. Consumer Financial Protection Bureau withdrew from the case.
The lawsuit, filed in April 2022, accused MoneyGram of violating a 2013 federal rule intended to protect people sending money abroad. New York Attorney General Letitia James said the company caused delays in money transfers, failed to inform senders about transfer timing, and did not properly handle complaints.
The agreement was filed in federal court in Manhattan. MoneyGram did not admit or deny wrongdoing as part of the settlement. The company must now make clear disclosures about how it investigates errors and ensure that customers are not held responsible for those mistakes.
MoneyGram, based in Dallas, was bought in 2023 by Madison Dearborn Partners, a private equity firm.
In a statement, MoneyGram’s general counsel Cory Feinberg said the company is glad to close a case that dates back several years and did not involve harm to consumers.
The CFPB had announced its withdrawal from the case on April 7, saying the decision was made under new leadership and based on principles of justice and fairness. Since January, the agency has scaled back enforcement activities as the Trump administration works to reduce its operations.
