FARMERS BRANCH, Texas (10/30/13)--Saying it is putting its members' needs first, a Texas credit union will continue its international remittances transfer program--even though it and other financial institutions will face more compliance and due diligence regulations under the Consumer Finance Protection Bureau's new Remittance Transfer Rule, which went into effect Monday.
Border FCU, a $120 million asset credit union based in Del Rio, Texas, says it won't stop offering international remittances to its members, despite the new rule. Instead it will tough it out in order to serve its members' needs.
Maria Martinez, president/CEO of the $120 million asset credit union, told the Cornerstone Credit Union League that despite the fact the rule requires more compliance and due diligence, remittances are a service that is greatly needed, so it will continue offering the service (Leaguer Oct. 29).
"If we were to stop offering remittances, we would be closing the doors on our members who rely on a safe and secure method of getting funds to loved ones," she told the league.
Border FCU offers remittances via Directo a Mexico, as well as through Catalyst Corporate FCU. It is being forced to raise its fee for both services. The fee for Direct a Mexico will increase to $5 from $3, the credit union said.
"Remittances are not a significant revenue generator for us. We offer the service because we recognize that a significant percentage of our membership has family living abroad who depend on the remittances," Martinez said. "However, in order for us to continue providing the service, our members will have to share in the cost."
The Credit Union National Association is seeking information from credit unions about whether the new rules' compliance burdens are forcing closures of or cutbacks in their remittance programs.