By Jonathan Stempel and Katanga Johnson

NEW YORK, (Reuters) –MoneyGram International Inc was sued by two regulators on Thursday for violating a federal rule that makes it simpler for Americans to send money abroad to their friends and relatives.

MoneyGram is one of America’s largest providers of remittance transfer services. The U.S. Consumer Financial Protection Bureau filed the complaint in Manhattan Federal Court by Letitia James, New York Attorney General.

Transmittances allow Americans to send money electronically overseas. They are worth more than $100 Billion annually.

MoneyGram was accused repeatedly of “stranding” customers waiting for their money. Senders were given inaccurate information on when the transfers would take place and MoneyGram failed to respond to customer complaints as required by the 2013 rule.

The regulators stated that problems continue despite a number of technology and software updates to respond to CFPB exams and that certain transactions still get “stuck’ in MoneyGram’s systems.

Rohit Chopra, Director of CFPB said that MoneyGram had spent many years failing customers and not following the law. He also ignored customer complaints and warnings. It is imperative to end the long-standing pattern of misconduct at MoneyGram.

MoneyGram didn’t immediately reply to our requests for comment. Madison Dearborn Partners, a private equity firm in Dallas, agreed to acquire the Dallas-based business in February for $1.8 billion.

After falling to $9.76 earlier, MoneyGram shares fell 55 cents or 5.1% in afternoon trading.

Thursday’s suit seeks unspecified damages, refunds and restitution amongst other remedies.