WASHINGTON (UPDATED: 4/30/13, 4:00 p.m. ET)--Oct. 28 will be the effective date for the Consumer Financial Protection Bureau's remittance regulations, the bureau said today.
Under the final rule published last February, remittance transfer providers will be required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.
The Credit Union National Association advocated for a delayed effective date, as well as other beneficial changes that have been added to the rule. The final rule provides additional flexibility for credit unions and other remittance transfer providers by:
Unfortunately, CUNA noted, the agency did not revisit the 100 transfers per year exemption threshold. "We continue to urge the CFPB to revisit these rules and to make additional changes to facilitate remittance transfers for credit unions," CUNA said.
CUNA's International Remittances Working Group has met with CFPB Director Richard Cordray and his senior staff and CUNA senior staff have had numerous meetings and telephone conversations with CFPB officials to advocate for credit unions on remittance issues.
Remittance rule revisions addressing fees and foreign tax disclosures and how financial institutions will cope with account or routing number errors were also released on Tuesday.
For more on the revisions, see News Now on Wednesday.