In 2009, $414 billion dollars were transferred using money wire services. A large segment of this use was from foreign workers sending money to relatives back home. As part of the Dodd-Frank regulatory overhaul signed in July, The Federal Reserve may now require money transfer companies to disclose various fees which could impact revenues of such companies as Western Union and MoneyGram. Consumer advocacy groups including the D.C. based National Council of La Raza, who advocates on behalf of Latinos, lobbied for the measure to be included in the bill saying that such fees unfairly take advantage of the many low wage earners who frequently use these services. Countering that position, the National Money Transmitters Association, maintains that smaller transfer service companies will be hurt by the legislation. Moneygram, one of the industry’s giants “supports the well-intentioned goals” of the legislation but fears unintended consequences.
Read The Entire Story by Carter Dougherty of Bloomberg