CFPB finalizes remittance rule raising threshold to 500
The Consumer Financial Protection Bureau (CFPB) issued its final rule on remittances Monday, which comes after strong CUNA engagement with the CFPB to finalize the rule. The rule raises the “normal course of business threshold” to 500 remittance transfers per year, up from the current 100.
“The CFPB’s final remittances rule will help credit union members access safe and affordable remittance services from their credit union. We appreciate the CFPB for having given consideration to the concerns we expressed during the rulemaking process and making changes to the final rule. While we continue to believe an even higher exemption threshold is appropriate, this rule should result in more options for consumers which is always important, but even more so during the COVID-19 pandemic,” said CUNA President/CEO Jim Nussle.
The final rule also includes a provision allowing depositories to continue providing estimates of exchange rates and certain fees in certain circumstances, language designed to mitigate the expiration of a statutory safe harbor involving fee estimates later this year.
The rule will become effective July 21, 2020.
The CFPB also announced last month it plans to adopt a flexible approach to supervision and enforcement of remittance transfers due to the pandemic.