WASHINGTON—When it comes to money transfers, consumers complain about safely and efficiently sending money and being victims of fraud.
The CFPB Tuesday released its latest monthly consumer complaint snapshot, highlighting consumer complaints about money transfers. As of Dec. 1, 2015, the Bureau has handled over 770,100 complaints across all products.
“People rely on the money transfer process to make payments and take care of family members that they cannot be with,” said CFPB Director Richard Cordray. “Through rules on international money transfers and continued supervision of this important financial service, the Bureau is working to make sure that consumers can easily send money without having to worry about delays or hidden fees.”
As of Dec. 1, 2015, the Bureau had handled approximately 5,100 money transfer complaints, which include both domestic and international transfers. Some of the findings in the snapshot include:
- Consumers victimized by fraud: Of all complaints about money transfers, 42% of them involved consumers complaining about being victims of fraud. A common fraud tactic mentioned by consumers involves the fraud perpetrator asking for a money transfer in order to provide relief to a family member in need, the CFPB said. “While this is the most common type of money transfer complaint, it is not targeted at the actual money transfer service being provided”.
- Problems transferring money: Consumers complain about problems arising when they try to complete a money transfer. Some consumers complained that the amount of money transmitted was smaller than expected, while others mentioned the money they sent being significantly and unexpectedly delayed.
- Lack of adequate customer service: Many complaints about money transfers centered around problems consumers faced when they contacted the company for help. People complained about long hold times when attempting to speak to a representative, and that when they did manage to get through to someone, they were provided confusing or inadequate information. Other consumers said when they called they were simply unable to speak to anyone from the company, the CFPB stated.
- Issues resolving errors: Consumers complain that refunds on money transfers are often subject to long delays, and that their rights in resolving an error are not made clear by the company they are working with.
- Most-complained-about companies: MoneyGram, Western Union, PayPal, and JPMorgan Chase were the four companies about which the CFPB has received the most money transfer complaints. Between July 2015 and September 2015, the four companies accounted for 80% of all money transfer complaints. Company-level information should be considered in the context of company size and activity in the relevant market.