CFPB requests information on CUNA-requested remittance rule changes
WASHINGTON, DC (April 25, 2019) — Today the Consumer Financial Protection Bureau (CFPB) issued a request for information (RFI) on its Remittance Rule. Credit Union National Association (CUNA) has advocated that the CFPB substantially amend its remittances rule to make it more tailored to allow consumer access to desired products and services. The trade association raised the issue most recently in a letter to Director Kathy Kraninger.
“CUNA has asked the CFPB for years to finalize substantive amendments to the remittance rule in order to balance necessary consumer protections with a more tailored regulation that allows consumers access to these services,” said CUNA President/CEO Jim Nussle. “We’re thankful to the CFPB for starting this process, and we thank our league and credit union partners who have brought this issue up in meetings with Director Kraninger, CFPB staff and other policymakers.”
The remittance rule places enhanced regulatory requirements on remittance transfer providers conducting remittances as part of their normal course of business. To make the rule’s coverage clearer, the CFPB created a safe harbor that excludes a provider that conducts fewer than 100 transfers.
CUNA maintains that the current threshold is too low and has resulted in many credit unions ceasing to offer this service and has recommended the threshold be raised to at least 1,000.
The RFI also requests information regarding the rule’s “fee estimates” safe harbor. This temporary safe harbor permits – in certain circumstances – a provider to disclose estimates of those fee amounts, as opposed to the exact amount. This exception is set to expire on July 21, 2020, unless there is action from Congress.
CUNA believes the fee estimates safe harbor is still appropriate and necessary and has recommended the CFPB urge Congress to extend the safe harbor or make it permanent.
About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
