MoneyGram is preparing to fight what it calls a "baseless" Consumer Financial Protection Bureau (CFPB) and New York Attorney General lawsuit accusing the money transfer giant of "leaving families high and dry".
The suit accuses MoneyGram of systematically and repeatedly violating consumer financial protection laws, calling the firm a "repeat offender".
Specifically, the CFPB says MoneyGram stranded customers waiting for their money, holding funds in limbo in needless delays.
In addition, the company botched instructions to employees on how to resolve disputes and neglected to develop and document policies and procedures, says the suit.
“MoneyGram spent years failing its customers and failing to follow the law, ignoring customer complaints and government warnings in the process,” says CFPB director Rohit Chopra. “MoneyGram’s long pattern of misconduct must be halted.”
In response, MoneyGram says it is "fully prepared to vigorously defend itself and expose the meritless nature of the lawsuit in court".