The Consumer Financial Protection Bureau (CFPB) announced Friday it is seeking comment on a bureau plan to assess its rule on international remittances. CUNA has long believed the rule, which took effect in October 2013, is overly broad, and feedback from member credit unions is that this rule has harmed consumers by forcing them out of this market.
“We appreciate that the CFPB recognizes their statutory mandate to review the impact of the remittances rules on consumers. We hope that they pay particular attention to the concerns credit unions have raised about the impact of this rule on credit union members,” said Ryan Donovan, CUNA’s chief advocacy officer. “A recent CUNA member survey showed that over half (55%) of credit unions that have offered international remittances sometime during the past five years have either cut back (27%) or stopped offering them (28%), primarily due to burden from CFPB regulations.
“This very serious problem should be addressed by the CFPB during this review of the remittances rule,” Donovan added.
The Dodd-Frank Act requires CFPB to assess some of its rules within 5 years after taking effect. Assessments under the Dodd-Frank Act are not considered part of any formal or informal rulemaking under the Administrative Procedures Act.
According to the bureau, it will consider relevant comments and other information it receives, and a report of the assessment will be issued in fall 2018.
Comments on the plan are due within 60 days of its publication in the Federal Register, which should be in the coming days.