Newsroom
CFPB remittance rule revised, takes effect Oct. 28
May 1, 2013 – The CFPB on Tuesday issued a final rule on international remittances and set the effective date for Oct. 28, which gives credit unions and other affected institutions an additional six-month compliance period, as urged by NAFCU.
The rule creates a comprehensive consumer protection regime for remittance transfers sent by consumers in the United States to individuals and businesses in foreign countries. It requires remittance transfer providers to disclose certain fees and taxes, as well as the exchange rate that will apply to the transfer. It also provides consumers with error resolution and cancellation rights.
 Fred Becker |
The final rule reflects NAFCU's recommendations to scale back disclosures of foreign taxes, which may be difficult for credit unions to ascertain. "We appreciate that the CFPB scaled back these requirements and eased some aspects of the 2012 rule," said NAFCU President and CEO Fred Becker. "However, the rule still imposes several costly requirements, and we remain concerned that many credit unions will either leave the market or sharply reduce their presence.
"Finally, we believe that the exemption for credit unions, which applies only to those institutions facilitating up to 100 remittances a year, remains far too low."