A class-action lawsuit against Western Union is a promising way to get back the money customers sent through their service. A federal judge recently ruled that Western Union owes millions of customers a collective $586 million in damages after it failed to follow federal rules regarding anti-money laundering and the filing of Suspicious Activity Reports. The company has agreed to settle the lawsuit for the amount but has not yet filed a response to the complaint.
The lawsuit alleges that Western Union ignored a consumer complaint and a money-transfer agent arrest, and failed to redress these problems.
In addition to ignoring the FTC’s complaints, Western Union also failed to provide notice that the money transfer was not completed. It took until 2018 for the company to respond. The case claims that WesternUnion failed to disclose the costs and charges of these transactions and that the exchange rate for these payments was inflated, resulting in a hefty fee.
In the United States, Western Union has received over 550,928 complaints about fraud. The company had multiple agents in the United States, and the average complaint involved a transfer of $1,148. This amounts to just 1% of the $85 billion Western Union handled in transactions in 2014. The lawsuit will seek remission of the fees owed, plus interest. In addition to damages, the plaintiffs want to recover costs related to the fraudulent transactions.
A major complaint states that Western Union failed to disclose that it added a significant margin to the foreign exchange rate that customers would not have otherwise known.
Furthermore, the company continued to contract with agents that had high levels of consumer fraud. The margin is not disclosed to the customer, and the company did not do anything about the problem, even after it was discovered. Moreover, the AML failures were hidden in small print. Despite Western Union’s blatant violations, the customers were never notified.
The company is cooperating with the lawsuit, but there are still some challenges to the company’s compliance with the law. The company was found to have failed to implement a proper AML compliance program, and the executives must have known about the ongoing legal violations. Further, the executive’s alleged misstatements were not accurate. The court ruled that Western Union failed to implement a proper AML compliance policy and that its agents should not be allowed to make fraudulent transfers.
The plaintiff in the Western Union class-action lawsuit says that the company did not implement a proper AML compliance program and that it is responsible for these violations.
While the company is trying to prove that it did not have a proper AML compliance program, it is still liable for the damages caused by its customers’ lack of protection from the scammers. The plaintiffs have not been able to collect any restitution in the past, but they are now pursuing the case.
In an attempt to settle the lawsuit, the Western Union company settled Tennille v. Western Union Company suit, alleging that the company had unlawfully withheld money from failed transfers. The company boasted of the fact that it had $3.8 billion in settlement assets from failed transfers. During this time, the lawsuit has been settled, and it is a win-win situation for consumers. In the meantime, the company’s practices must be changed.
As part of the settlement, the company has agreed to refund any money lost through the wire transfer.
The company also agrees to reimburse customers who have been ripped off by Western Union. The court’s order requires Western Union to reimburse them for the money they have received through their wire transfers. The deadline for filing claims is May 31 and will take a year to process the claim. There are no legal fees, but the process is time-consuming.
A Western Union class action lawsuit claims that the company failed to disclose the true costs of its services. The company did not disclose the actual costs of its services. In addition, the company fails to disclose that its margin of profit increases when a customer uses its service. As a result, consumers were not able to compare prices between different currencies. To compensate consumers, Western Union has resolved the issue, and the company has agreed to settle the case.
