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March 17, 2017

NAFCU welcomes CFPB review of remittance rule

The CFPB announced Friday it is seeking comments on its plan to assess its remittance rule. NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt noted NAFCU's concerns about the rule's highly burdensome compliance costs for credit unions.

"The bureau's review of the rule is a welcome development, but it comes too late for credit unions that have had to cease offering this important service due to the heavy burdens associated with it," said Hunt. "Credit unions provide cost-effective remittance services to members, and Congress recognized that when it granted credit unions the authority to provide them to nonmembers in 2006. NAFCU hopes the CFPB will exempt credit unions from the rule."

The CFPB made changes to its remittance rule in 2013. Comments on the plan to assess the rule will be due 60 days after the request is published in the Federal Register.

NAFCU continues to engage with its members on this issue; the overwhelming majority maintain that they have been forced to stop offering remittance transfer services due to the final rule's high regulatory burden.