The government’s Consumer Financial Protection Bureau (CFPB) has been fielding a lot of consumer complaints about the money transfer industry, and it has compiled a report about the most common ones.
Funds transfer is a service that many people resort to in emergencies. Often, it is the only way to get needed emergency funds to a family member or friend quickly.
For many immigrants, transferring money provides a needed financial lifeline for loved ones back home.
So, it’s troubling to see that so many consumers are having problems with these services.
CFPB recently released a report chronicling the most common causes of money transfer problems:
- Consumers victimized by fraud: Of all complaints about money transfers, 42 percent of them involved consumers complaining about being victims of fraud.
- A common fraud tactic mentioned by consumers involves the fraud perpetrator asking for a money transfer in order to provide relief to a family member in need. While this is the most common type of money transfer complaint, it is not targeted at the actual money transfer service being provided.
- Problems transferring money: Consumers complain about problems arising when they try to complete a money transfer. Some consumers complained that the amount of money transmitted was smaller than expected, while others mentioned the money they sent being significantly and unexpectedly delayed.
- Lack of adequate customer service: Many complaints about money transfers centered around problems consumers faced when they contacted the company for help.
- People complained about long hold times when attempting to speak to a representative, and that when they did manage to get through to someone, they were provided confusing or inadequate information. Other consumers said when they called they were simply unable to speak to anyone from the company.