December 20, 2005
STAR-TELEGRAM
Melissa Sanchez
 
Some wire transfer businesses may take advantage of immigrants sending money to Mexico during the holiday season, according to the Texas attorney general's office.

More than 10 million Mexican immigrants living in the United States will send about $20 billion to Mexico this year -- the largest remittance market in the world -- and nearly $948 million in hidden fees will never make it there, according to a report released last week by Appleseed, a national legal-advocacy organization.

"A serious lack of transparency, lack of consistent access to correct pricing information and a lack of standardized pricing disclosure practices make it extremely difficult for consumers," the report states.

Texas law does not require that transfer companies post the exchange rate, said Paco Felici, a spokesman for the attorney general's office. Businesses are required to print the rate on the receipt in Spanish and English, but they must disclose the rate beforehand only if a consumer asks.

A fee is sometimes charged to the recipient to claim the money, the report states. About 51 percent of people receiving the money in Mexico earn $370 or less a month, and eliminating the $5 to $10 fee would make a big difference, said Annette Lo Voi, executive director of Texas Appleseed.

These remittances are one of the largest sources of income for Mexico, Lo Voi said. "It is important to make certain this large volume of money is safely transmitted for the persons for whom it is intended," she said.

The 13 Texas companies surveyed by Appleseed charge $14 on average to send $300 to Mexico. Wells Fargo charged the most, $18.11, and Bank of America charged the least, $11.64.

Bank of America spokeswoman Diane Wagner said the low rates are because of the bank's new initiative to eliminate all fees for money transfers targeting Hispanics -- anyone with a checking account can send money for free.

"We service 48 percent of the Hispanic population in this country, and we know they want to be able to save and get money into the hands of their families safely," Wagner said.

Hispanics can open an account with two forms of identification, such as a matricula consular, a Mexican driver's license or a credit card, she said.

Wells Fargo spokeswoman Lisa Westermann said that many different variables go into calculating the charges and that sometimes consumers are charged a flat fee, making it beneficial to send a large amount of money.

Texas law says that consumers unhappy with a wire transaction should call the toll-free number at the bottom of their receipt to request a refund, Felici said. If the consumer calls within 30 minutes of the transaction and remains inside the business, the entire transfer, with fees included, will be refunded if the recipient has not picked it up yet, he said.