January 6, 2023

Servicio UniTeller Must Refund Consumers, Pay Fines for Failure to Follow Remittance Rules

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

The CFPB issued an order against Servicio UniTeller, Inc., an international remittance company that helps consumers send money to their families overseas, for violations of the Electronic Fund Transfer Act (EFTA) and the Consumer Financial Protection Act (CFPA).
According to the order, Servicio UniTeller violated several of the EFTA’s Remittance Rule requirements regarding errors in processing remittances, including a requirement that remittance providers must refund the sender when an error results in a failure to transfer funds to a recipient as requested. Additionally, Servicio UniTeller did not accurately inform senders of their cancellation rights or the date that funds would be available.
Under the terms of the order, Servicio UniTeller is required to maintain written policies and procedures in compliance with the EFTA and the Remittance Rule. It must also provide a refund of approximately $30,000 to consumers affected by its conduct and pay a civil penalty of $700,000 to the CFPB.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.