CUNA calls for higher remittances exemption threshold
The Consumer Financial Protection Bureau’s remittance transfer exception is too low and unintentionally harming consumers by forcing providers out of the market, CUNA wrote to the bureau Friday. The letter was sent in response to the CFPB’s review of its remittance assessment.
“We believe the rule has also clearly resulted in unintended harm to consumers,” the letter reads. “The harm is generally in the form of decreased availability of remittance services and/or increased prices where such services are available. The price increase is due in part to an increase in compliance costs under the current rule as well as a decrease in competition among remittance transfer providers.
“Competition has decreased because of providers intentionally limiting remittance transfers to remain below the safe harbor threshold as well as former providers exiting the remittance market entirely because of its failure to remain economically viable,” the letter adds.
CUNA called for CFPB to raise the safe harbor threshold to entities providing at least 1,000 remittances annually, up from the current 100.
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