WA State, Others, Slam Door on Popular Money Transfer App
The Washington State Department of Financial Institutions (DFI) along with 39 other states, Washington D.C., and Puerto Rico, have all joined to slap a cease and desist on the popular money transfer app Sigue.
Company agrees to the demand
According to DFI, Sigue has agreed to cease operations, and DFI released this information on Friday:
"Sigue is a state-regulated money transmission company licensed in Washington and 48 other states (NMLS ID 915912). During the past several months, Sigue experienced significant financial deterioration. The company failed to complete multiple money orders and transmissions and failed to maintain adequate net worth and permissible investments to cover outstanding liabilities. These are all violations of Washington State money transmission law. Many customers are still waiting for their funds."
The company and its parent subsidiaries are headquartered in Sylmar, CA. DFI says they and other government financial entities have demanded access to their records, and investigations will continue. In 2020, Sigue was hit with a consent order by the Consumer Financial Protection Bureau for some violations concerning disclosures, refunds, and proper reimbursement to consumers.
Sigue is somewhat of a competitor to the much larger PayPal and Venmo, it has significant use among Hispanic populations and has a lot of usage internationally.
According to WA DIF:
"If you live in Washington State and used Sigue to transmit funds, and the funds have not yet reached their destination, you may file a complaint with DFI online at https://dfi.wa.gov/consumers/file-complaint/money-services-complaint/online-complaint-form or fill out the printable form at https://dfi.wa.gov/sites/default/files/money-services-complaint.pdf."
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