CFPB Proposes 90-Day Delay In Remittance Rule

The Consumer Financial Protection Bureau is issuing a proposal for comment on its international remittance rule that would delay implementation of the entire remittance rule to 90 days after the changes are finalized.

The proposal, to be issued next month, will address a limited set of issues, including  1) errors resulting from incorrect account numbers provided by senders of remittance transfers; (2) the disclosure of certain foreign taxes and third-party fees; and (3) the disclosure of sub-national, foreign taxes.

“The Bureau anticipates providing this extension in order to permit providers to adjust their systems in response to the proposed requirements.,” the CFPB said in a bulletin. “The Bureau expects that the proposed effective date will be sometime during the spring of 2013.”

CFPB Director Richard Cordray reached out to NAFCU President and CEO Fred Becker this fall on the remittance rule to seek input on the regulatory burden posed to credit unions. During that call, Cordray noted particular interest in the extent to which the rule would cause credit unions to cease offering international remittances.

This summer, NAFCU worked to get congressional signers to a bipartisan letter sent to Cordray urging a delay in the rule’s implementation.

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