CFPB Pulls Out of Remittance Lawsuit Against Dallas-Based MoneyGram

Court records filed on Monday show that the Consumer Financial Protection Bureau (CFPB) dropped out of the joint lawsuit it brought against Dallas-based MoneyGram International in 2022. This leaves the New York Attorney General's Office as the only client in the case.

The CFPB, an important federal agency that monitors consumer finances, said that the cash transfer giant was constantly breaking federal rules meant to protect Americans who send money abroad. The rules ensure that foreign money transfers are delivered on time and are clear, which is very important for immigrant and working-class families with relatives living abroad.

The agency told the court that it couldn't just throw out the case because the State of New York was still involved since that state has its own set of laws. The decision fits with the CFPB's larger move away from ongoing litigation, which has resulted in a number of cases being dropped or put off since the Trump administration started to weaken the agency's enforcement efforts.

A spokesman for the New York Attorney General said that the state plans to continue with the case even though the CFPB is not present. MoneyGram was bought by Madison Dearborn Partners of Chicago for $1.8 billion in 2023, but the company hasn't publicly commented on this.

The case had already been delayed because of ongoing court disputes about how the CFPB got its money. Last year, the U.S. Supreme Court ruled in favor of the agency.

The Consumer Financial Protection Bureau (CFPB) had already thrown out at least nine of the twenty-four open enforcement cases when Trump took office. While lawsuits against Experian and Comerica Bank in Dallas are ongoing, others have been put on hold.

Right now, New York state prosecutors are in charge of making the final choice in the MoneyGram case.

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