Consumer complaint received 2016-11-03
Product: Money transfers — International money transfer
Issue: Other service issues — 
Company: MONEYGRAM PAYMENT SYSTEMS WORLDWIDE INC (GA)

This complaint is about discriminatory practices and denial of services by MONEYGRAM INTERNATIONAL, INC.. XXXX XXXX XXXX XXXX XXXX XXXX , Texas On XXXX/XXXX/XXXX I initiated a money transfer on MoneyGram site. 
This was a {$1900.00} transfer to my cousin in XXXX. The fee, using my bank account was {$5.00}. The transaction authorization number is XXXX, obtained using my online account and password, and a security code sent to my email. 
At XXXX, an email was sent asking to call MoneyGram ( XXXX ). 
Which I did. After verifications ( name, address, date of birth, last XXXX of SSN ... ), the agent asked my relationship to the transfer 's beneficiary .I told her it was not their business, but nonetheless answered. 
She then asked the transfer 's purpose. I questioned the purpose of this question. She decided that the transaction was cancelled and that I should go to a store. 
I asked to speak to a manager on that discriminatory practice, because it was not applied to all users of MoneyGram but selectively based on destination ( XXXX ), sender perceived or implied origin, or both. 
After narrating the facts as above, the escalation person told me that I was asked these questions because t it was my first transaction ( after telling me it was asked from all ). 
I responded I had used the MoneyGram online to send money to XXXX during the previous 30 days. As a matter of fact, records available show I did a transfer to XXXX using the very same service on XXXX/XXXX/XXXX ( ref XXXX ), to XXXX on XXXX/XXXX/XXXX ( ref XXXX ) ( see attached confirmation emails ). 
In fact I have been using MoneyGram transfer service way back with some archived records showing transfer dating back to XXXX with amount as large if not larger ( see attached receipt emails ) with online account established as early as XXXX/XXXX/XXXX if not earlier. 
I indicated to the representative that MoneyGram 's practice was discriminatory as I was NOT asked these questions when transferring money to XXXX, but asked when transferring to XXXX, a XXXX XXXX country. 
She pretended it was for the protection of my account and I asked how the statement about the reason of my transfer which they have no way of verifying, is protecting my account. 
The conversation ended as the representative indicated again that my transaction has been cancelled ( not offering me the opportunity to answer the transfer purpose question ) and I should go to a store to complete the transaction. 
It should be noted that transaction at the store and the online transactions carry different fees. Using the online transaction and a funding from a previously associated bank account -as I did-, the transaction fee is {$5.00}, with a delivery in few days. That option and fee is NOT available in stores and the fee for the same transfer in a store is {$39.00}. This is a significant XXXX fee increase. 
The online transaction I initiated does not present any risk profile by any reasonable standard, with the funding is from a bank account in my name and is therefore fully traceable and all security checks listed above. 
As I tried to login into my account later in the early evening and was directed to contact Customer Service again. 
On the call, the representative told me that my account was permanently closed and service was denied by Security, that no reason shall be provided, and that I had to go in stores. 
This is an unacceptable denial of service on a discriminatory basis. 
My wife -XXXX-did endure the same discriminatory practice but did not complain. 
I would request the agency investigates and take action to prevent the repetition of such discriminatory practices. 
I am requesting that my online account -XXXX- and that of my wife XXXX- be fully re-instated with all transfer privileges according to the fee and rules applicable to all. 
Thanks & Regards XXXX XXXX