League Wants to Hear from CUs on Complying with the Remittance Transfer Rule

Monday, November 19, 2012 12:09:00 PM

 

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The Consumer Financial Protection Bureau's (CFPB) upcoming remittance transfer rule is scheduled to go into effect on February 7, 2013. Under the CFPB's rule, remittance transfer providers would be required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, fees, and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.

Under the CFPB's rule, remittance transfer providers would be required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, fees, and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors. The bureau's new remittance rule will take effect Feb. 7.

Some credit unions are thinking about limiting the number of transfers they allow per month or for the year. Other credit unions may be thinking about exiting participation in remittance transfers altogether. The League would like to hear from you. Take the short survey today by clicking here.

The CFPB finalized the rule last January expanding remittance disclosures, and revised it in August to exempt institutions with fewer than 100 remittances a year. But industry groups are still asking the bureau to relax certain requirements, or at the very least give them more time to comply. The rule requires remittance transfer providers to disclose the information when the customer first requests the transfer, and again when the payment is made. Consumers will generally have 30 minutes after the payment is made to cancel a transaction.

Click here for more information on the rule, safe harbor, and its amendments.

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