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Maxitransfers Corp settles with CFPB for alleged Remittance Transfers violations

Irving, TX
08/27/2019
Fine Amount: 
$500,000
Penalty Type: 
Issued by: 

The CFPB has announced a settlement agreement with Maxitransfers Corporation, headquartered in Irving, Texas, a company that provides consumers remittance transfer services allowing them to send money overseas.

From October 2013 until May 2017, Maxi sent approximately 14.5 million remittance transfers for consumers in the U.S. For each transfer, Maxi was required to provide consumer protection disclosures and to comply with other requirements of EFTA (Electronic Fund Transfer Act) and the Remittance Transfer Rule.

According to the consent order, the Bureau found that Maxi violated the Consumer Financial Protection Act of 2010 (CFPA) by stating to consumers that it would not be responsible for errors made by its third-party payment agents when in fact the Remittance Transfer Rule makes Maxi responsible for the acts of the agent when the agent acts for the provider. The Bureau also found that Maxi violated EFTA and the Remittance Transfer Rule by using inaccurate language in disclosures and failing to maintain required policies and procedures to comply with error resolution procedures.

Under the terms of the consent order, Maxi must pay a civil money penalty of $500,000, must refrain from violating the CFPA by stating that it is not responsible for the acts of its agents, and must take steps to improve its compliance management to prevent future violations of the CFPA, EFTA, and Remittance Transfer Rule.

Maxitransfer Corp. has neither admitted nor denied any of the Bureau's findings set out in the Order.

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