The Consumer Financial Protection Bureau (CFPB) should explore several revisions and additions to its remittance rule, CUNA wrote to the CFPB Tuesday. The CFPB issued a proposed rule making several changes to the remittance rule, including raising the “normal course of business threshold” to 500 remittance transfers per year.
The CFPB’s remittance rule establishes consumer protections for covered international money transfers. CUNA’s outreach to Leagues and credit unions regarding the rule’s impact has shown that the compliance resources needed to offer the service has led many credit unions to discontinue offering it.
“CUNA continues to believe remittances are an important member service and we support appropriate and tailored safeguards for consumers initiating remittances,” the letter reads. “The Remittance Rule, as it stands, must be amended to reduce the overall cost of compliance and ensure consumers have access to remittance services from their local credit union.”
CUNA recommends the CFPB:
CUNA’s analysis shows, under the current 100-transfer threshold, 96% of all credit union remittance transfers are covered by the rule and must comply with its requirements. Raising the threshold to 1,000 would provide relief to 300 credit unions, while still covered 84% of all remittances made by credit unions.