 SETTLEMENT REACHED IN LAWSUIT OVER MONEY TRANSFERS TO MEXICO
A federal judge recently approved a settlement in a case by customers of money transfer services against those businesses. The plaintiffs in the class action lawsuit claimed that Western Union, Orlandi Valuta and MoneyGram engaged in false advertising and failed to disclose transfer fees and other hidden charges. Those three companies account for over 80 percent of the money transferred from the US to Mexico.
The settlement is valued at 5 million, and as many as five million people may benefit from it. The settlement will come in the form of coupons that can be used to reduce service changes on future money transfers. The companies will also have to disclose the difference in the exchange rates that they use to buy pesos and the exchange rate they apply to the customers’ money.
Finally, a .66 million fund will be created that will provide grants to organizations serving Mexican communities in the US. The Mexican American Legal Defense Fund and the National Association of Latino Elected and Appointed Officials will administer the fund.
| 
