Vermont Business MagazineConsumers who used MoneyGram’s wire transfer service to send money to third parties involved in schemes to defraud them may be entitled to compensation under a multistatesettlementbetween Attorney General William H. Sorrell, other state attorneys general, and Dallas-based MoneyGram Payment Systems, Inc.
“Con artists use a wide variety of schemes to persuade consumers to wire them money and wire transfer companies have a responsibility to help stop them,” said Attorney General Sorrell. “If you receive solicitations promising big winnings, toss the letters in the trash, delete the e-mail, or hang up the phone. If you are contacted about a grandchild, friend or family member in distress, verify independently that the person actually is in need of the assistance.”
Within the next 90 days, eligible Vermont consumers will receive a notice mailed from a settlement administrator with instructions on how to claim their restitution payment. The State of Vermont will receive $400,000 from the settlement for Vermont’s role in leading the multistate investigation.
The settlement also requires MoneyGram to improve its anti-fraud program to provide even greater protection to consumers, including: (i) enhanced compliance training for agents; (ii) suspension or termination of agents who fail to take commercially reasonable steps to reduce fraud induced money transfers; (iii) a hotline system for employees and agents to report suspicious activity; and (iv) better evaluation of actual fraud rates to improve compliance.
MoneyGram will pay $13 million dollars total, as follows: $9 million dollars to fund the nationwide consumer restitution program and $4 million dollars for the states’ costs and fees. In addition to Vermont, 48 states and the District of Columbia participated in this settlement.
More information about this settlement is available in the attached“Consumer FAQ”or at the Settlement Administrator’s website:http://www.moneygramsettlement.com
Vermont AG: Feb 12, 2016