For Immediate Release - July 24, 2014

Massachusetts Division of Banks Reimburses $865,000 to Consumers Affected by Shuttered Foreign Money Transmitter

BOSTON - The Massachusetts Office of Consumer of Affairs and Division of Banks (Division) announced today that the Division has reimbursed approximately $865,000 to more than 430 Massachusetts consumers who were financially harmed as a direct result of InterTransfers, Inc.’s (InterTransfers) and its related company Global Money Remittance, Inc.’s (Global Money) failure to transmit funds received for remittance to foreign countries during March and April 2013.

“These companies caused considerable financial harm to many consumers,” said Consumer Affairs and Business Regulation Undersecretary Barbara Anthony.  “Our Division of Banks has worked diligently to ensure that consumers impacted by these negligent actions have been reimbursed.”

The Division issued a permanent Cease and Desist Order against both companies in May 2013 as a result of each company’s failure to transmit consumer funds.

In May 2013, the Division filed a claim on a surety bond maintained by the companies to recover funds to reimburse Massachusetts consumers harmed by the wrongful acts of InterTranfers and Global Money.  InterTransfers and Global Money had been licensed with the Division since August 2007, and April 2006, respectively, to offer foreign transmittal services through 52 authorized agent locations in the Commonwealth. Both companies primarily transferred funds to Brazil.

“The Division continues to be vigilant in protecting Massachusetts consumers from being victimized by reckless companies that place consumers’ funds at risk,” said Commissioner of Banks David J. Cotney.  “We will continue to pursue actions against companies like these that violate laws that are intended to instill confidence in financial transactions.”

To ensure that a foreign transmittal company is licensed in Massachusetts, consumers should check the Division’s website at www.mass.gov/dob or www.nmlsconsumeraccess.org.  Consumers affected by InterTransfers and Global Money’s actions who have not already submitted a claim for reimbursement, or who have questions about a pending claim, should contact the Division of Banks’ Consumer Hotline at 1-800-495-BANK (2265) x 501

The Division of Banks oversees state-chartered banks and credit unions and is responsible for the licensing and supervision of non-depository licensees including mortgage lenders, mortgage brokers, mortgage loan originators, consumer finance companies, money services businesses, debt collectors, and loan servicers.  The Division is an agency within the Office of Consumer Affairs and Business Regulation.

The Office of Consumer Affairs and Business Regulation is committed to protecting consumers through consumer advocacy and education, and also works to ensure that the businesses its agencies regulate treat all Massachusetts consumers fairly.  Follow the Office at its blog, on Facebook and on Twitter, @Mass_Consumer

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