CFPB orders Servicio UniTeller to refund fees and pay penalty
The US Consumer Financial Protection Bureau (CFPB) has ordered remittance company Servicio UniTeller to reimburse affected customers and pay a $700,000 penalty.
CFPB orders Servicio UniTeller to pay penalty
The CFPB says it found that between 2013 and 2021, the remittance firm “failed to comply” with many of the requirements governing electronic money transfers, including failing to refund customers after the company made money transfer errors.
Headquartered in New Jersey, USA, Servicio UniTeller is a nonbank remittance transfer provider for 48 states in the US and the District of Columbia, and has payment locations in over 70 foreign countries.
As part of its enforcement action, the CFPB ordered Servicio UniTeller to refund approximately $30,000 to affected consumers, take steps to comply with the Electronic Fund Transfer Act and its Remittance Transfer Rule, and pay a $700,000 fine which will be deposited in the CFPB’s victims’ relief fund.
“Consumers paid fees to Servicio UniTeller when they sent money to their families overseas, but when the money did not arrive on time, Servicio UniTeller failed to provide appropriate refunds,” says CFPB director Rohit Chopra.
“The CFPB and state regulators are carefully watching remittance providers to ensure they follow the law.”
