CFPB remittance policy statement provides flexible approach
The Consumer Financial Protection Bureau (CFPB) issued a recent policy statement outlining its plan to adopt a flexible approach to supervision and enforcement of remittance transfers.
Currently the CFPB has in place a temporary exception to the requirement that a remittance transfer provider to disclose certain information to consumers who send remittance transfers, including information related to the exact costs of a transfer. The exception allows insured institutions to disclose estimated exchange rates and certain third-party fees, instead of exact amounts, in some circumstances.
That temporary exception is set to expire on July 21. The CFPB’s recent policy statement says that, for international remittance transfers that occur on or after July 21, 2020 and before Jan. 1, 2021, the CFPB will neither cite supervisory violations nor initiate enforcement actions against insured institutions for continuing to provide estimates to consumers under the temporary exception, instead of actual amounts.
For additional details on the policy statement, see CUNA’s Removing Barriers Blog.
CFPB Director Kathy Kraninger said at this year’s CUNA Governmental Affairs Conference that the CFPB intends to finalize the December proposed remittance rule in May.