CFPB Sets Oct. 28 as Compliance Date for Revised Foreign Remittance-Transfer Rule (May 2, 2013)
The Consumer Financial Protection Bureau this week made some adjustments and extended by several months the effective date of final rules on international money transfers, ending a period of limbo for remittance-transfer providers. Oct. 28, 2013, is the new effective date for the CFPB’s revised final remittance rule affecting foreign remittances, amending Regulation E of the Electronic Fund Transfer Act, eight months later than the original Feb. 7, 2013, compliance date, the agency said. The added time will provide remittance transfer companies “sufficient time” to adapt to the latest changes in the final rule, updated April 30. The CFPB originally published the rule in January 2012, but in November of that year announced it would make some “limited amendments” to the rule, indefinitely postponing its effective date. The CFPB on Jan. 29, 2013, said it would delay the rule’s effective date until it finalized a revised final rule it proposed Dec. 31, 2012.
The CFPB created the rule to address consumer complaints, including money not being available when promised; incorrect amounts charged or received; and incorrect or missing disclosure information, among others, according to the agency blog. The revised final rule requires that remittance transfer providers disclose the exchange rate as well as certain fees and taxes associated with a transfer and the amount of money that will be received on the other end. Consumers retain error resolution and cancellation rights, and remittance transfer providers must investigate disputes and correct errors. The revised rule now requires that “when funds are deposited into the wrong account because the sender provided an incorrect account number or routing number and certain other conditions are satisfied, the provider would be required to attempt to recover the funds but would not bear the cost of funds that cannot be recovered,” the CFPB said. The CFPB made no changes to its 100 transfers-per-year exemption threshold. The revised final rule maintains consumer protections “while facilitating compliance for providers of remittance transfers,” said Richard Cordray, CFPB director.