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ARTICLE · 22 OCTOBER 2023

CFPB Acts Against Fintech Operator Of Mobile App For Illegal International Money Transfers

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Through the mobile app, consumers were able to send money internationally, primarily to countries in Africa and Asia.

GlobalTechnology
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
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On October 17, the CFPB took action against a nonbank fintech company for allegedly deceiving consumers about the speed and cost of remittance transfers through its mobile app. The Bureau also alleges that the company illegally forced consumers to waive their legal rights, failed to provide consumers with legally required disclosures and receipts, and failed to properly investigate consumer disputes and errors. The CFPB is ordering the company to refund affected consumers nearly $1.5 million in fees and pay a $1.5 million penalty into the CFPB's victims relief fund.

Through the mobile app, consumers were able to send money internationally, primarily to countries in Africa and Asia. Recipients received the remittance transfers by delivery to a mobile wallet, bank account, or in-person cash pick-up. The CFPB found that the company violated the CFPA's prohibition on deceptive acts and practices by misrepresenting to consumers the speed and cost of its remittance

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