CFPB Penalizes Small World Money Transfer for Money Transfer Violations

The Consumer Financial Protection Bureau (CFPB) has penalized Choice Money Transfer, dba Small World Money Transfer, for multiple violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act (EFTA), according to public statement.

The CFPB claims that it found the company did not accurately disclose prepayment information to remittance senders, such as money transfer fees, current exchange rates, and the date the recipient would receive the funds. Additionally, the CFPB states that the company was deficient in record keeping and users found it difficult to dispute erroneous transactions.

The CFPB is ordering Choice Money to pay a $950,000 penalty that will be deposited into the CFPB’s victims relief fund.

CFPB Director Rohit Chopra. said the company is required to accurately disclose key information for its users:

“Choice Money also failed to refund certain fees when recipients did not receive their money transfers on time.”

Incorporated in New York and headquartered in Englewood Cliffs, N.J. Choice Money is a subsidiary of United Kingdom-based Small World Financial Services Group Limited.

Choice Money is said to be licensed in 27 states and the District of Columbia. Choice Money currently handles approximately 500,000 transfers a month.

The CFPB commenced an investigation in 2020 to determine if the company had violated the Remittance Transfer Rule. The CFPB states that it uncovered multiple violations of EFTA and Regulation E, including the Remittance Transfer Rule since the rule’s inception.

Additionally, the company allegedly violated the Consumer Financial Protection Act through Regulation E and Remittance Transfer Rule violations.

The order requires Choice Money to provide the following:

  • Broad corrective action: Choice Money must implement a wide-ranging set of compliance provisions to improve its policies and procedures, error resolution practices, record retention, compliance management, training, and audit and monitoring functions.
  • Pay $950,000 in fines

Register Now!
Sponsored Links by DQ Promote



Send this to a friend