FOR IMMEDIATE RELEASE : Wednesday, February 17, 2016
CONTACT: Sara Rabern (605)773-3215
South Dakota Joins Multistate Settlement with MoneyGram
PIERRE, S.D. - Attorney General Marty Jackley today announced a settlement with MoneyGram Payment Systems, Inc. resolving a multistate investigation which focused on complaints of consumers who used MoneyGram’s wire transfer service to send money to third parties involved in schemes to defraud consumers. This settlement involved South Dakota and 48 other states and the District of Columbia participated in this settlement. South Dakota’s share of this settlement was $20,000.
“Con artists use a wide variety of schemes to persuade consumers to wire them money,” said Jackley. “Consumers, who receive solicitations promising big winnings should toss those letters in the trash, delete the e-mail or hang up the phone.”
The settlement has two main components. First, MoneyGram has agreed to maintain and continue to improve a comprehensive and robust anti-fraud program designed to help detect and prevent consumers from suffering financial losses as a result of these types of fraud induced wire transfers.
Second, MoneyGram has agreed to pay a total of 13 million dollars to the states to fund a nationwide consumer restitution program and for the states’ costs and fees. The settlement provides for an independent third party settlement administrator who will review MoneyGram records and send notices regarding restitution 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.