Western Union has dominated the remittance market for several years. It is the largest and oldest money transfer company in the world and immigrants have been one of the largest users of the Western Union services, and clearly for anyone transferring money to the Caribbean, Western Union has been the chief method for decades. So this community of immigrants and of the Caribbean has long been customers of Western Union and have suffered many problems in Western Union through the years.
Ask any immigrant or any Caribbean person who has had dealings with Western Union and you will get a story, a complaint, and some are horrific.
- Advertisement -
For some years now, the Department of Justice of the United States has been investigating Western Union and its practices, and has forced Western Union into an agreement with the Justice Department to forfeit some $586 million to victims who have suffered fraudulent activities through Western Union and some of its services. Victims of fraud who sent money through Western Union between January 1, 2004, and January 2017 were able to file petition to receive compensation for their fraud losses. Over $365 million of monies was previously paid out to victims of these fraudulent activities. Now it has been announced that the Justice Department is releasing another 40 million that is available to be paid out to fraud victims of Western Union activities, victims that are primarily from the Caribbean and other immigrant groups.
The Department of Justice continues to receive petitions for remission from fraud victims and are anticipating authorizing more payments to these victims in the future and so It is to be noted by victims who have not already filed that the opportunity still exists for them to file claim for any fraud. Western Union has been the lifeline for so many immigrant communities over the years, a lifeline that, however, has had its ugly side for the users of the service, sending money to relatives. Immigrants sending money to a relative has been an age old practice and has grown more popular through the years. In fact, to the Caribbean alone, there has been billions of dollars sent to families back home. Recently over 100 immigrant advocacy groups in the U.S. have accused Western Union of charging exorbitant fees, while failing to adequately reinvest in immigrant communities that provide the biggest source of their market.
The group also asks for Western Union to lower their fees and to put some of its profit back into the communities that provide that large profit margin. The money transfer market has boomed over the years, and the World Bank reports that the international remittance received by developing countries has doubled in the last five years.
According to the immigrant advocacy group, Western Union reinvests $0.40 for every $100 of profit, compared with $2.30 reinvested by Wal-Mart Stores Inc., and $7.50 by Ben and Jerry. Even the advocacy groups are asking or suggesting that Western Union should reinvest at least $1 per transaction in the community. It has been a complaint for years that apart from the lack of services, that Western Union is not paying attention to those communities where it reaps its most profit. It is time that this practice be viewed as a disservice to the community it serves. Inasmuch as the Department of Justice is putting pressure on Western Union around fraudulent activities, there should be equal pressure on Western Union to be more responsive to the community that provides its huge profit margin in the way of reinvestment and services. It’s a poor immigrant community that has made Western Union the giant it is and it is that community that should reap some benefits from the profits.
