S.D. AG announces settlement with MoneyGram

By Bryan Cohen | Sep 9, 2013

PIERRE, S.D. (Legal Newsline) - South Dakota Attorney General Marty Jackley announced a settlement Thursday with MoneyGram International Inc. that will allow certain MoneyGram customers to receive refunds.

MoneyGram agreed to a $100 million settlement with the U.S. Postal Inspection Service. The service forfeited the money to return the funds back to eligible consumers. The settlement resolved allegations that MoneyGram was involved in consumer and mass marketing fraud resulting in tens of thousands of individuals losing money to advance fee and similar scams.

MoneyGram customers who sent money using MoneyGram between Jan. 1, 2004, and Aug. 31, 2009, sent money in the U.S. or Canada to a payee in the U.S. or Canada and lost money because of fraud will be eligible to get money back. To be eligible, customers must have been defrauded into sending the money, such as in a scam promising victims they would receive a large cash prize, secret shopper scams or buying high ticket items for sale at discounted rates online and never receiving the items.

MoneyGram sent claim letters to known victims in July. Consumers who did not receive the letter who meet the requirements can submit a remission form that must be postmarked no later than Nov. 15.


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