The Consumer Financial Protection Bureau has fined an international remittance company $700,000 for not refunding consumers after it made transfer errors, in a failure to comply with the Electronic Funds Transfer Act.
A copy of the enforcement action against Servicio UniTeller can be accessed by clicking here.
Between 2013 and 2021, the company allegedly did not refund thousands of customers who submitted error notices after the recipient of a transfer was unable to access the funds by the promised date. The company also failed to notify customers of their cancellation rights nor accurately disclose the date funds would be available. The company’s disclosures also did not meet the minimum font size requirements.
Under the terms of the order, the company will refund $30,000 back to consumers who were harmed when they did not receive remittance fee refunds, update the disclosures and information that are provided to customers as well as update its error resolution policies and procedures, and pay a fine of $700,000.
The company provides international money transfers to consumers in 48 states and the District of Columbia and has payment locations in 70 countries nationwide. Tens of billions of dollars are sent using these kinds of companies every year to people abroad, according to the CFPB.
“Consumers paid fees to Servicio UniTeller when they sent money to their families overseas, but when the money did not arrive on time, Servicio UniTeller failed to provide appropriate refunds,” said CFPB Director Rohit Chopra, in a statement. “The CFPB and state regulators are carefully watching remittance providers to ensure they follow the law.”
