New Disclosures to be Required in International Transfers
January 25, 2012
January 26, 2012
On Jan. 20, 2012, the Consumer Financial Protection Bureau (CFPB) adopted new protections for consumers who transfer money internationally. Under the new rule, effective January 2013, remittance transfer providers must disclose the exchange rate and all fees associated with a transfer so members know exactly how much money will be received on the other end. Providers must also provide a receipt or proof of payment that repeats the information in the first disclosure, and the receipt must tell the member when the money will arrive.
The rules apply to remittance transfers greater than $15 made by a consumer in the United States and sent to a person or company in a foreign country. The CFPB provided model forms, which the Northwest Credit Union Association (NWCUA) has created as a Microsoft Word document and made available in the Resources section of InfoSight.
Also included in the new rule are consumer protection provisions, such as a 30-minute right to cancel transactions, a right to investigation of reported errors, and even credit union liability for some errors.
While this is a final rule, the CFPB is still soliciting comments for changes to the rule. Specifically, it is looking for feedback on exemptions for companies that do not usually provide remittance transfers (such as many credit unions) and on how to apply the rules when a transfer is scheduled several days in advance. The CFPB has promised that it will act quickly to make any changes prior to January 2013—the effective date of the rule.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.
Posted in Compliance.