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Texas Attorney General Announces Multistate Settlement with Moneygram

Company will pay millions in restitution and attorney fees; agrees to robust anti-fraud program to protect consumers.


Texas Attorney General Ken Paxton today announced a settlement with Dallas-based MoneyGram Payment Systems, Inc., resolving a multistate investigation focused on MoneyGram’s role in transferring money from consumers to people defrauding them.  In addition to Texas, 48 states and the District of Columbia participated in this settlement, with Texas serving on the Executive Committee through the investigation and subsequent negotiations.

 “In far too many cases consumers, many of them elderly, are harassed or manipulated into sending their hard-earned money to third parties via wire transfers, and this agreement provides additional protections against this fraudulent practice,” said Attorney General Ken Paxton. “Consumers must always remain aware of these schemes, and view solicitations from strangers promising big winnings with the deepest suspicion. The best defense is to toss these types of letters in the trash, delete these emails or simply hang up the phone.”

 As part of the agreement, MoneyGram agreed to maintain and continue to improve a comprehensive and robust anti-fraud program to help detect fraud and prevent consumers from suffering financial losses in fraudulent wire transfers.

 MoneyGram has also agreed to pay a total of $13 million to the states, funding a nationwide consumer restitution program, and to cover the states’ costs and fees. The settlement provides for an independent third party settlement administrator to review MoneyGram records and send notices to all consumers who are eligible to receive restitution under this settlement. Generally, consumers who are eligible for restitution previously filed complaints with MoneyGram between July 1, 2008, and August 31, 2009 regarding fraud induced transfers sent from the U.S. to foreign countries other than Canada.

 More information about this settlement is available at the settlement administrator’s website: www.MoneyGramSettlement.com

 In addition to Texas the following participated in the settlement: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

Texas AG’s information on how to avoid phone scams.

 To view the signed agreement click here: https://www.texasattorneygeneral.gov/files/epress/files/2016/16_0211_MoneyGram_AVC.pdf

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