Remittance Transfer Disclosures
The Federal Reserve Board has issued a proposal to require disclosures on remittance transfers to recipients in foreign countries. The proposal implements the remittance transfer disclosures under Regulation E (Electronic Fund Transfers) as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The proposed rule would require remittance transfer providers to make certain disclosures to senders of remittance transfers—including information about fees and the exchange rate, as applicable, and the amount of currency the recipient receives. In addition, the proposed rule would provide error resolution and cancellation rights for senders of remittance transfers.
The proposal would apply to virtually all cross-border, consumer-initiated electronic fund transfers, including international wire transfers, international automated clearinghouse transfers, and products such as WOCCU’s IRnet, although federally-insured credit unions are exempted from some of the proposed requirements. The proposal doesn’t cover debit and credit cards, transactions from a consumer’s U.S. credit union account to a credit union or bank account in that consumer’s name in another country, or online bill payments made through a website.
More information is available in CUNA’s Regulatory Comment Call, available at cuna.org (“regulations & compliance” and then “regulatory advocacy”). Comments are due by July 22, 2011.
‘Know Before You Owe’
The Consumer Financial Protection Bureau (CFPB) launched the ‘Know Before You Owe’ project in May. It’s an effort to combine the Truth in Lending mortgage disclosure and the Real Estate Settlement Procedures Act Good Faith Estimate into a “single, simpler form that makes the costs and risks of loans clear and allows consumers to comparison shop for the best offer.”
Congress and federal regulators have considered merging the two disclosures for many years. But the Dodd-Frank Act now directs the CFPB to develop new integrated disclosures.
The CFPB is testing two alternate prototype forms lenders can give to consumers who’ve just applied for a mortgage.
The CFPB also has posted the prototypes at consumerfinance.gov. It includes an interactive tool to gather public input about the designs.
The testing will take place during the summer, to be followed by CFPB’s formal rule-making
process. The Dodd-Frank Act requires CFPB to issue proposed forms and implementing regulations for comment by July 2012.