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WASHINGTON — The Consumer Financial Protection Bureau has started taking consumer complaints on money transfers before it finalizes amendments to its remittance rule.
April 8 -
WASHINGTON — The Consumer Financial Protection Bureau on Friday specified changes it would like to make to a rule designed to increase regulation of international money transfers.
December 21 -
The industry has asked the CFPB to delay the effective date for a rule expanding disclosures for remittance transfers.
November 2
WASHINGTON — The Consumer Financial Protection Bureau revised its final rule on international money transfers on Tuesday in an effort to lift the compliance burden on small banks.
The rule was changed so that it required less paperwork, but it still requires further disclosures and monetary protections for consumers.
Under the rule, banks that accept international money transfers must disclose their fees as well as that of the intermediary institution but no longer must disclose foreign taxes and certain outside fees.
The revised rule also requires the provider to "attempt" to recover any funds deposited into the wrong account when a sender provided incorrect information. However, it says the provider does not have to bear the cost of funds if it can't be recovered.
"We are dedicated to protecting consumers who send money abroad and to preserving their access to these services," said CFPB Director Richard Cordray, in the release. "Today's final rule achieves these goals by maintaining the rule's crucial new consumer protections while facilitating compliance for providers of remittance transfers."
Since the final rule was first published in February 2012, the banking industry has long complained that the reporting requirements were paperwork-intensive, creating a heavy burden on smaller institutions. The agency has since made several amendments to the rule including the more recent revisions first announced in December.
Earlier this month, the agency said in a blog posting that it would take complaints on money transfers from consumers who experienced transaction errors or document problems. Even though the final rule no longer requires banks to disclose certain foreign taxes and fees, the revision requires banks to give consumers a disclaimer notifying them that other fees and taxes may apply.
The agency said the rule will be effective on Oct. 28.
"The CFPB believes that this added time will allow entities that provide remittance transfers sufficient time to adapt to today's changes," the release said.
