CFPB Revises International Money Transfer Rules
The Consumer Financial Protection Bureau is adjusting its rule that creates certain protections for consumers that send money overseas via international money transfers. The rule was first proposed on December 31, 2012 and will take effect on October 28, 2013.
Under the new remittance rule, transfer providers must disclose certain fees, such as a provider’s own fees and those charged by an agent of the provider or intermediary institution. It must also publicize foreign taxes and disclose the exchange rate that applies to the transfer.
Consumers must be able to see the amount the recipient will receive. In addition, consumers will be given error resolution and cancellation rights.
The provider will also be required to attempt to recover funds that are deposited into the wrong account because the sender gave an incorrect routing or account number. The provider is not required to recover the cost of funds that can’t be recovered.
“We are dedicated to protecting consumers who send money abroad and to preserving their access to these services,” said CFPB Director Richard Cordray in a statement. “[This] final rule achieves these goals by maintaining the rule’s crucial new consumer protections while facilitating compliance for providers of remittance transfers.”