Money gram transfer gone missing

chucihob

My niece spent the summer in camp America, earning $1400. Upon finishing she used Moneygram in Walmart to transfer the money to her U.K. bank account whilst she spent a few days travelling. The cashier took down her 16-digit card number rather than sort code and account number and the money has apparently been transferred to Nationwide USA which is an insurance company and not affiliated with a Nationwide U.K. We opened a complaints case as moneygram are stating the money has been wired to the account she gave and have told her she needs to wait 15 business days for them to try recovering the money. 21 business days have passed and they are asking for her to wait a further 15 business days as they can’t get hold of the recipient. They state it’s not guaranteed she’ll get refunded. My niece is back in the U.K. now and has started Uni, this is causing her (and us) a great deal of stress in addition to her needing the money for Uni costs. Any advice please or how we get her money back? We have put in two official complaints via their website and received automatic responses to call them. When you call, they say the same thing, wait a further 15 days. Many thanks.

Manxman_in_exile

Sounds like this is an American banking law/procedures problem.

Unlikely anybody here can help unless they are a banking expert or know about relevant American law.  If @born_again sees this thread they may be able to help.  I think they work in a bank.

Hasn't your daughter enquired of her bank if they could help or provide advice?

user1977

I suspect this might be difficult if your daughter is deemed to have agreed with the (wrong) account number used - presumably the sender normally sees where the money is going to be sent, even if they don't personally write it down on the form (or however it's authorised)?

Manxman_in_exile

I'm not sure if the daughter did "agree with the wrong account number"?  (Although I agree it's likely to be difficult to sort out... )

It sounds like the daughter provided the correct account number and sort code for her Nationwide account in the UK, but that the Moneygram representative wrongly decided to only use her 16 digit card number.  Perhaps that was all that would have been needed if it had been a transfer within the US banking system and the Moneygram rep had (mistakenly) decided that the Nationwide bank in the UK was the same financial entity as Nationwide Insurance in the US.  [Edit:  it's not clear if the daughter verified the deatils]

Or perhaps the OP's daughter should have been more insistent on explaining that this was an international transfer going outside the US banking system and she should have insisted on the full details being used?  (It's the sort of thing a young teenager, who hasn't even been to university yet, might well lack the self-confidence and assertiveness to really press somebody about to make sure things go right... ) 

I think it needs somebody who is familiar with the banking system - whether here or in the US

Alderbank

The sender also has to specify whether the payment is domestic (within the same country) or international.
In the USA the sender has to be resident within the USA.

Moneygram is a respected and fully regulated company not just in the USA but UK and many countries worldwide. Their T&Cs say that where their agent has made a mistake, as this case appears to be, they will give full refund including all fees.
I think the OP's daughter will just have to wait until Nationwide USA has traced, recovered and returned the unsolicited payment.

user1977

Their agent certainly ought to be familiar with IBAN numbers for international transfers (and that such things aren't likely to be on cards...), and by their nature I would expect Moneygram transfers to be liable to be going abroad anyway. Though I guess the "agent" might be the equivalent of someone in a corner shop who does this only once in a while, rather than a full time bank clerk.

born_again

Manxman_in_exile said:

Sounds like this is an American banking law/procedures problem.

Unlikely anybody here can help unless they are a banking expert or know about relevant American law.  If @born_again sees this thread they may be able to help.  I think they work in a bank.

Hasn't your daughter enquired of her bank if they could help or provide advice?

Nationwide will not be able to do anything, as this has nothing to do with them other than being the intended payee. They have had or ever will have anything to do with the payment, other than receive it.

This will need taking up with moneygram in US. But in effect this is just the same as sending cash. So do not know if they could help, as appears that the error was @ Walmart. 
Wonder if OP made it clear that this was going to a UK bank.

If they know where the money has gone, then that should help, but guess it is sat in a internal account at company & no one knows what to do with it. 
Do not even know if Moneygram could recall it. Would take a rep to take charge contact co & get someone there to also take charge, find money & send it back to account it was sent from. So it could be sent on again. But that is going to require a lot of cooperation & time in both parties to sort out.