Hawaii takes part in multistate settlement against MoneyGram

Hawaii is part of a multistate settlement to provide restitution for consumers who used MoneyGram to make fraud-induced transfers.

The settlement resolves a multistate investigation that focused on complaints of consumers who used MoneyGram Payment Systems Inc.’s wire transfer service to send money to third parties involved in schemes to defraud consumers. In addition to Hawaii, 48 states and the District of Columbia participated in this settlement, said Stephen Levins, executive director of the state’s Office of Consumer Protection.

The settlement resolves a multistate investigation that focused on complaints of consumers who used MoneyGram’s wire transfer service to send money to third parties involved in schemes to defraud consumers. In addition to Hawaii, 48 states and the District of Columbia participated in this settlement.

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 fraud and prevent consumers from suffering financial losses as a result of these types of fraud induced wire transfers. Second, MoneyGram has agreed to pay $13 million to the states to fund a nationwide consumer restitution program and for the states’ costs and fees.

Hawaii’s portion of the settlement will be $85,000, according to Levins.

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 Aug. 31, 2009, regarding fraud induced transfers sent from the U.S. to foreign countries other than Canada.

Info: www.MoneyGramSettlement.com.