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LAWSUITS NEWS & LEGAL INFORMATION

MoneyGram Settles Fraud Class Action for $13M


This is a settlement for the lawsuit.

New York, NY: A $13 million settlement has been reached in a consumer fraud class action lawsuit pending against MoneyGram Payment Systems Inc. Brought by New York Attorney General Eric T. Schneiderman, the lawsuit claimed that consumers who used MoneyGram' wire transfer service to send money to third parties were subject to fraud schemes.

Forty-eight other states and the District of Columbia participated in this settlement with New York.

As part of the settlement, MoneyGram agreed to maintain and improve a comprehensive anti-fraud program. The goal of the program is to prevent consumers from suffering financial losses due to fraud-induced wire transfers.

The $13 million that MoneyGram agreed to will go to the states and be used to fund a nationwide consumer restitution program. The settlement documents note that a third party administrator will review MoneyGram records and send notice to eligible restitution recipients.

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Published on Feb-15-16


READER COMMENTS

Posted by

on
Yes I was scammed as well. Thought I was purchasing a vehicle and they stole my money. I still have the emails and everything and it happen in 2008.

Posted by

on
lost my life saving $150,000 thur western union, money gram and Walmart to PCH AND MEGA MILLIONS SCAM

Posted by

on
I was a victim as well. I tried to purchase a used vehicle online from this website. Unbeknown to me the website was fake. Well not really, I was told that it was a real company but, the website had been compromised. Without knowing this ahead of time, I had sent money through MoneyGram for this car. Later the FBI contacted me informing me that I had been scammed and that they were investigating the people connected with that website.

Posted by

on
I AM A VICTIM OF FRAUD THRU MONEY GRAM. I SENT SEVERAL HUNDRED DOLLARS TO NIGERIA THRU A DATING SCAM. DO I QUALIFY FOR A REFUND?

Posted by

on
If i am a victim of a scam from money gram do i qualify for a refund from the settlement.?

Posted by

on
Money-Gram discriminates period, if you have an Eastern name, African name, Spanish name or anything that is not American, you are automatically considered a scammer. Isn't that supposed to be illegal in this country?They even discriminate against hard working Americans, if I want to send my money, and I sign the piece of paper, then I am responsible, there is no reason to discriminate because of my last name, period.

Posted by

on
in june 2017 I went 6 times to different stores to reload my card and they would take all my personal information and and put me on hold then tell me everything was ready hang up and go to the clerk and tell them this is an express payment and the amount. each time money gram system would not let the transaction go through.

Posted by

on
money gram took all my info and told me that I can not send money online. when I tried to get the name (from person, speaking with heavy latino's accent) they simple hang up. every phone calls - same result/
stay away from money gram, they will collect your personal info and ...

Posted by

on
I would like to start out the story by saying me and my wife are Currently serving in the Air Force. We are both home stationed at Dover AFB. We are are working middle class family with 3 toddlers. I start it out that way to show we do not bother anyone, but just try to live the best we can.

Over the weekend, Saturday to be exact I was looking for a new car on a reputable site called offer up. I found a 2010 Nissan with fairly low miles and contacted the seller (Sally Harper)via email. She promptly responded back and told me she was selling the car and it was available. She only was selling low because her daughter was killed by a truck driver 4 months earlier and the car brought up bad memories. I understood and we moved forward through the process.

The next step included EBay Motors sales company sending me over the invoice to make the payment. I promptly responded back and they showed vin #, make, model etc on the vehicle. She insured me EBay motors was the safest as it protected both her and me from fraud. I gathered up the 2000 dollars and submitted to the EBay agent the Moneygram of 2000 which I still have proof of.

After submitting payment they promptly let me know the money was picked up and I would need to send 1000 more for insurance of vehicle while being delivered. I contacted back the fake individual named Sally Harper and she assured me it was refundable. By this time I was getting sketchy on it all. I decided to do more research and found other members with Similar stories to me and my wife's.

I understand I will probably never get my hard earned 2000 back, but I truly wrote this and hope to be contacted to have these scammers prosecuted to the highest order. Me and my Wife do not have money to essentially throw away. I contacted EBay to inform them of how these individuals operate under there name and same email format, but they were very dismissive of my situation acting like 2000 just grew on trees. I wasn't even offered a gift card for Pete's sake. Just no sympathy at all. I was extremely angry at the way they treated my situation. I really hope to be contacted back

Lastly, I have all the emails and the receipt for the 2000 Money GONE.

HOPE THIS HELPS SONEONE ELSE OUT
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Posted by

on
I sent many money gram payments for my credit card and it got my account frequent errors

Posted by

on
I AM A CUSTOMER WHO USES MONEY GRAM .

Posted by

on
I was part of a money scheme with a company that offered employment sent me $2500 cashier check for programs I would need to purchase through money gram. I lost $1300 and police couldn't help or my bank account because the money was sent through money gram.

Posted by

on
Hello I have purchased 2 money grams for 500 each. They got lost in the mail and are not cashed I have done everything money gram has told me. They keep telling me it will be 50 days to get my money back if they get my claim card and I have to pay $36 or 100 to get a response back in 8 days. They are taking so much money from me just for them to cancel money orders that aren't cashed just to send me back my money. But yet they get there money as soon as I swipe my debit card and God forbid one gets lost cause then they get ether $18 per money order or $45 if you want to start an 8 day process. Is this even legal?

Posted by

on
Money gram ha recently started asking for lot of personal information to send my money and can't tell me why. This information can be used in fraudulent ways such as opening accounts etcetera, using this information. I want th o know if this is federal mandated to give this information when I am never sending more than two hundred dollars.

Posted by

on
I were scam out of thousands of dollars by someone that said they work.with the federal government. I will send them.money though Western Union.

Posted by

on
Fruaded through money gram system!!

Posted by

on
Anatomy of a scam:
On February 18, 2016 and February 19, 2016 my 92 year old mother, Shirley Pachtman who lives in Torrance, CA, was the victim of a phone scam. She lost thousands of dollars.
I have done extensive research and was in touch with:
-The LA FBI office (they told me they don’t actively pursue these scams)
-The Federal Trade Commission where I put in a formal complaint (never received a reply)
-The Torrance CA Police Department include Victim Assistance (they offer psychological support but no economic reimbursement)
-The Torrance economic crime unit
-The bank where my mother withdrew thousands of dollars in cash without ever being questioned (I spoke to people at various levels of the bank. Their attitude was that if the customer/victim had ID they would give them the cash)
-The supermarket where she purchased cash cards which are used extensively in these scams (their attitude was if the victim has the cash they will sell them hundreds or thousands of dollars worth of these cards)
-The cash card company-(they allowed the scammers to receive $2000 on day one, and $2000 on day 2 but refused to cash anything over $2000 on day 2 so my mother lost $4000 instead of $5000.)

Posted by

on
I use money gram all of the time, what I found is that it all most never arrives when they say it will arrive. Please consider me

Posted by

on
Please consider me. I use money gram all the time.

Posted by

on
I was a victim of Fraud ! I was scammed $2000 dollars money gram . It took all the money I had saved up for the past two years.. that was the money I had worked hard for that was the only money I had...I also received three other checks which I still have and saved texted and emails.

Posted by

on
I did translation with moneygram

Posted by

on
I am a victim of fraud. Last year I was involved in a check that was sent to me and then money sent back. I am now in overdraft at my bank for over 2 grand! I have to make payments each month to the bank now. Also, they tried to send me 3 more checks which I personally handed to the police. I was told there was nothing they could do about it, and said they would shred the checks for me.

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