Initially, Western union online, who I have used numerous times, refused to send $100 to my daughter stranded without gasoline money in Pittsburg, PA. After dealing with a clerk who refused to help me, I asked for a supervisor. They required me to verify telephone information. I gave them my home number in my wife's name, as well as 4 cell phone numbers that I pay for on the Sprint bill in my name. They were unable to verify the information. When I asked for the name of the source they used for verification, Western Union refused to tell me. They are illegally using sources for credit checks and not informing consumers of the sources and not allowing consumers to dispute inaccurate information.

Western Union is in violation of the Fair Credit Reporting Act by using credit reporting information in their decision to make a money transfer, yet when inaccurate information is provided by their third-party source, they refuse to notify the consumer of the source of that information and prevent the consumer from disputing inaccurate credit report information.

The Federal Trade Commission needs to fine Western Union for each instance that credit report information was used to verify identity and that Western Union failed to provide written notice that consumer credit reports were accessed and the source of these reports.

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8 Updates & Rebuttals

Robert

Buffalo,
New York,
USA

what section?

#2Consumer Suggestion

Wed, April 07, 2010

I would still like to know what section of the FCRA you think they violated.

John

Gainesville,
Florida,
USA

Use Money Gram instead

#3Author of original report

Wed, April 07, 2010

You don't have to go down to Western Union in person to send money and they are available online. I have found out that Money Gram is not only just as easy, but faster and cheaper. Western Union can take 30 minutes to make money available, where Money Gram makes the money available immediately. They were also $2 cheaper than Western Union and are available everywhere, especially in Walmart, CVS and some grocery stores.

After the trouble Western Union has given me, I will never use them again! Money Gram gets all of my business.

Flynrider

Phoenix,
Arizona,
USA

Nothing to do with credit

#4Consumer Comment

Tue, April 06, 2010

Western Union is merely trying to verify some indentifying information before offering online services. The reason they're doing this is because of the rampant fraud occuring with online money transfers (which we see evidence of nearly every day here on ROR).

The questions they ask are an attempt to verify that you are who you say you are. The nature of the questions would lead me to believe that they're using simple public databases. If they can't verify who you are, for whatever reason, you can't do transfers online. You can still go to one of their locations and make a transfer in person.

This has absolutely nothing to do with credit or the FCRA.

John

Gainesville,
Florida,
USA

Western Union used a third-party to verify credit/identity information

#5Author of original report

Tue, April 06, 2010

Where Western Union made their mistake was by using a third-party not related to the credit card merchant to obtain information regarding my identity. If they had used address verification or other information from the merchant service, that would not have been an issue. As a matter of fact, I am sure they had already used information provided by the merchant service to verify my identity, such as billing address.

Western Union used this third party to obtain information about my identity (telephone records), then when the information came back derogatory (did not match), they attempted to use that as a decision to refuse my transfer. Then, after obtaining this derogatory information, they refused to tell me the source of the information, which prevented me from being able to dispute inaccurate consumer credit data.

The Federal Trade Commission requires all "credit check" or "background check" information that is degrogatory in nature must be reported to the consumer with the source of the information, so that consumers are afforded the opportunity to dispute it.

Anonymous

Los Angeles,
California,
USA

That happened to ME TOO !

#6Consumer Comment

Tue, April 06, 2010

SAME THING. I had used them for a long period then one day they decided that they are not going to allow transactions from me. I don't know why. I tried using different credit cards and different things but they wont do it. I called them up and they had questions like that for me too. They wont help me anymore until this day and thats it. They said i cant do it online. So I have to go the western union place down the street to do it in person now. What a pain in the arse.

Robert

Buffalo,
New York,
USA

I understand all that but.

#7Consumer Comment

Mon, April 05, 2010

"Any information used to validate this transfer is also covered under the FCRA and the FCRA requires the source of any unfavorable information collected to be revealed to the person attempting "credit"."

Western union is NOT a bank or financial institution. I don't see anything in your report to indicate that they even used a "credit report", let alone saw anything that was detrimental to you. Your report states that they could not verify some information that you provided them-not the same thing as a denial of credit, job, etc because of a bad credit history.

Actually, folks with bad credit use western union and moneygram all the time, so I fail to understand, based on your report, how they are violating the FCRA. BTW, I provide consumer credit counseling part time (for free- for about 30 years) and consider myself quite knowledgeable on the FDCPA, FCRA, CROA, etc.

What section do you think they violated? If you're correct, you should sue them in District Court.

John

Gainesville,
Florida,
USA

Money Transfers are covered in the FCRA

#8Author of original report

Mon, April 05, 2010

(3) The term debit card means any card issued by a financial institution to a consumer for use in initiating an electronic fund transfer from the account of the consumer at such financial institution, for the purpose of transferring money between accounts or obtaining money, property, labor, or services. (4) The terms account and electronic fund transfer have the same meanings as in section 903 of the Electronic Fund Transfer Act.

Any information used to validate this transfer is also covered under the FCRA and the FCRA requires the source of any unfavorable information collected to be revealed to the person attempting "credit".

Western Union refused to provide me the source of the negative information gathered and is preventing me from my right to dispute inaccurate credit information.

Robert

Buffalo,
New York,
USA

How is this a violation of the FCRA?

#9Consumer Comment

Sun, April 04, 2010

Please explain how this is a violation of the FCRA. You did not apply for credit or a job.

The FCRA deals with creditors and others who use credit reports for the purpose of appying for credit, jobs, housing, etc. No where does the FCRA stipulate rules about "wire transfers".

Please explain. What section of the FCRA have the violated?

Reports & Rebuttal