MADISON, Wis. (11/20/14)--Just over a year after the Consumer Financial Protection Bureau's (CFPB) regulation on international remittance transfers went into effect, the Credit Union National Association is following up with credit unions about how the rule affected their service to members. A previous CUNA survey asked about their expectations of the regulation.
CUNA is collecting the information to share with regulators and legislators so they have a better understanding of the operational impact of this regulation and to increase the likelihood that meaningful changes to those regulations are achieved, noted CUNA Deputy General Counsel Mary Dunn in the trade association's request to credit unions.
Under the regulation, remittance transfer providers are 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.
CUNA urged the CFPB to use its exemption authority granted by the Dodd-Frank Act to exempt all credit unions from this regulation because there was no evidence that credit unions engaged in providing remittance services to their members had been subject to complaints. The bureau did exempt credit unions that performed 100 or fewer international wire/ACH remittance transfers in the previous calendar year and in the current calendar year.
In August, the CFPB extended an exception that allows credit unions and other depository institutions to estimate certain remittance pricing disclosures when specific pricing information is not available.
Prior to last year's implementation, credit unions that responded to CUNA's first survey were concerned they would have to increase service fees, reduce international wire or automated clearinghouse services or even discontinue all types of international remittances.
CUNA requests responses by Wednesday, Nov. 26.