WASHINGTON (8/13/13)--While the Consumer Financial Protection Bureau's tweaks to its remittance rule provided some significant, helpful changes, credit unions remain concerned about the overall rule, a Credit Union National Association survey has revealed.
The survey results are detailed in CUNA's Regulatory Advocacy Report this week.
More than 90% of survey respondents believe the latest changes, which included making certain disclosures optional for financial institutions, were "very helpful" or "somewhat helpful."
However, more than 40% said they would need more time to comply with the regulation, in spite of the CFPB's decision to delay the rule's effective date until Oct. 28.
The survey also showed that:
Other issues highlighted by the survey results include working with correspondent institutions and vendors to implement the disclosures in time, as well as training staff.
"Some small credit unions plan to continue to offer remittances if they remain under the safe harbor exemption level, which is 100 or fewer transfers per year, because they do not have the resources to comply with the rule. In addition, many credit unions continue to be concerned with their liability and risk on transfers to foreign institutions, despite the changes to the rule in this area," CUNA Deputy General Counsel Mary Dunn wrote.
CUNA is following up with those credit unions that have continuing concerns and will be pursuing these issues aggressively with the CFPB, and working for greater regulatory relief, in upcoming meetings with the bureau.
The CFPB last week also released an updated small business guide for those impacted by the remittance rule.
The bureau also produced a video with even more information on the rule for remittance providers.
For the full CUNA Regulatory Advocacy Report, and more on the CFPB remittance resources, use the links.