- The Mississippi Department of Banking and Consumer Finance says the company can no longer responsibly serve customers due to its declining financial position.
On Friday, the Mississippi Department of Banking and Consumer Finance ordered Sigue Corp. to cease engaging in money transmission activities in Mississippi, saying the company can no longer responsibly serve customers due to its declining financial position.
A total of thirty-nine (39) states, Puerto Rico, and the District of Columbia coordinated to issue the consent order.
According to a release from the state’s Department of Banking and Consumer Finance, Sigue is a state-regulated money transmission company licensed in Mississippi and 48 other states that over the past several months has experienced significant financial deterioration. The company failed to complete multiple money orders and transmissions and to maintain adequate net worth and permissible investments to cover outstanding liabilities, both violations of state money transmission law, the department stated.
“This consent order was a coordinated effort of state agencies. The Money Transmitters Regulators Association (MTRA) and the Conference of State Bank Supervisors (CSBS) assisted state regulators with acting quickly to protect consumer funds,” said Commissioner Rhoshunda Kelly in a statement. “These efforts by the state system ensure that consumers are protected across state lines and will experience a similar remedy regardless of their location.”
The Department said the consent order requires the company to preserve and provide access to all books and records, including information on impacted customers. States will use the company’s signed declarations to file bond claims on behalf of impacted customers. The state surety bond claim process is designed to help make impacted consumers whole.
A message on Sigue’s website on Monday states: “We are no longer processing new money transfers, money orders, or bill payment transactions through agents, branches or our SiguePay mobile application, and we are making every effort to refund those transactions that remain outstanding.”
The company bills itself as a platform that allows customers to send money to family and friends in 60+ countries, fast, secure and convenient.
The Mississippi Department of Banking and Consumer Finance has set up an email address for consumers who have been impacted by Sigue at sigueinquiries@dbcf.ms.gov.
Frank Corder
