Consumers Transferring Money Most Concerned About Fraud
A recent report from the Consumer Financial Protection Bureau showed consumers are most concerned about fraudulent activity when it comes to money transfers.
As of December 1, the CFPB had handled 5,100 wire transfer complaints. The most prevalent issues were fraud, delays and poor customer service.
Fraud: Nearly half of the complaints (42%) on money transfers involved consumers who claimed they had been victims of fraud. The most common fraud tactic involves a criminal posing as a friend or family member and asking for emergency funds.
Problems Transferring Money: Some consumers faced issues while trying to send funds. Some said the money delivered was smaller than expected, while others said they faced long, unexpected delays.
Poor Customer Service: When consumers did call about issues, many complained of long hold times. Once they reached a representative, they were provided confusing or inadequate information. Some customers said they could not reach anyone at all.
Error Resolution: Consumers complained that refunds were delayed, and others said their error resolution rights were not made clear by the company.
Companies: The companies that were the target of the most complaints include MoneyGram, Western Union, PayPal and JPMorgan Chase. Between July 2015 and September 2015, these companies accounted for 80% of all money transfer complaints.
In 2013, the CFPB finalized rules on money transfers that provided more transparent fees and exchange rates, error resolution and cancellation rights.
“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.”
The report also showed there has been a 7% decrease in consumer complaints about debt collection since October.