A Thing
The Green SheetGreen Sheet

Friday, December 28, 2012

CFPB releases remittance changes, delays effective date

Proposed revisions to the Consumer Financial Protection Bureau's (CFPB's) pending regulations governing international money transfers were released Dec. 21, 2012. The proposed revisions, first announced in a CFPB bulletin Nov. 27, 2012, would refine remittance transfer provider (RTP) disclosure requirements regarding foreign exchange rates, fees, and consumer taxes.

The Dodd-Frank Wall Street Act of 2010 required the CFPB to create disclosure and error resolution regulations for international money transfers. CFPB proposes to add a new section to Regulation E of the Electronic Fund Transfer Act requiring RTPs to disclose all costs of remittance transfers to consumers prior to the transaction.

The revisions, created after public feedback on the proposed rules, relax and clarify the proposed disclosure requirements. The proposed revisions make RTPs track and disclose only published bank fee schedules and national taxes. The revisions also release a RTP from liability for non-delivery or late delivery of remittance transfers if it can prove the consumer provided wrong account information. The RTP would still have to make a good faith effort to recover the funds.

The CFPB called the proposed revisions "narrow in focus and intended to preserve the new consumer protections while facilitating compliance with the rule." Implementation of the new rule was originally scheduled for Feb. 7, 2013 but the CFPB said it will now push back implementation to 90 days after the revised rule is published in the Federal Register. end of article

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

Facebook
Twitter
LinkedIn
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing