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ARTICLE · 24 APRIL 2025

CFPB Drops Lawsuit Against Money Transmitter

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On April 8, a federal court granted the CFPB's motion to withdraw from its joint enforcement action against a global money transmitter. The lawsuit, originally filed in April 2022 in partnership with the New York Attorney General, alleged violations of the Electronic Fund Transfer Act (EFTA), including the Remittance Rule under its implementing Regulation E.

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Beineng Zhang
Beineng Zhang
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On April 8, a federal court granted the CFPB's motion to withdraw from its joint enforcement action against a global money transmitter. The lawsuit, originally filed in April 2022 in partnership with the New York Attorney General, alleged violations of the Electronic Fund Transfer Act (EFTA), including the Remittance Rule under its implementing Regulation E.

The complaint detailed a range of statutory and regulatory violations affecting remittance transfers used by consumers to send funds abroad. The core allegations included:

  • Inaccurate availability disclosures. The company allegedly failed to accurately disclose the date on which funds would be available to recipients.

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