Oct. 28 will be the effective date for the Consumer Financial Protection Bureau’s final remittance regulations, the bureau announced Tuesday.
The Credit Union National Association had urged a substantial delay in the original Feb. 7 effective date of the final rule, and the CFPB’s action yesterday, in effect, granted an eight-month delay.
Under the final rule, remittance transfer providers are required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.
CUNA’s International Remittances Working Group has met with CFPB Director Richard Cordray and his senior staff and CUNA senior staff have had numerous meetings and telephone conversations with CFPB officials to advocate for credit unions on remittance issues.
“In our several meetings with Director Cordray and his senior staff, we urged flexibility for credit unions using open networks, such as ACH, to send their members’ transfers,” said Mary Dunn, CUNA deputy general counsel, upon reviewing the rule. “The final provides that by eliminating the requirement that fees charged by recipient institutions should be disclosed unless the institution is acting as the provider’s agent.”