Compliance Q&A: Reg E’s Remittance Transfer Rule
What Reg E disclosures must we provide a member who requests a remittance transfer?
Q: What Reg E disclosures must we provide a member who requests a remittance transfer under Reg E’s remittance transfer rule?
A: Beginning Feb. 7, 2013, credit unions that offer remittance transfer services generally must provide the member with a written prepayment disclosure that contains information about the specific transfer.
This includes the exchange rate, applicable fees and taxes, and the amount the designated recipient will receive; and a written receipt when payment is made. The receipt must include the information provided on the prepayment disclosure, as well as the availability date, the recipient’s contact information, and the sender’s error resolution and cancellation rights.
The credit union can provide a combined disclosure prior to payment, so long as it also provides proof of payment (on the same or separate piece of paper). The rule provides model disclosures. (Reg E, Sec. 1005.31(b))
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