The CFPB announced in its Spring 2025 Regulatory Agenda that it will be finalizing amendments to the Remittance Transfer Rule under Regulation E, which implements the Electronic Funds Transfer Act (EFTA), to revise disclosure requirements and corresponding model forms to include clarifying information about the types of inquiries that may be most efficient to direct to the CFPB and the State agency that licenses the remittance transfer provider.… Continue Reading
remittance transfer
CFPB issues new circular on deceptive practices in connection with marketing remittance transfers
By Michael A. Hotz on
The CFPB issued a new circular advising remittance transfer providers that false advertising about the cost or speed of sending remittance transfers can be considered a violation of the Consumer Financial Protection Act even if a provider’s disclosures are in compliance with the CFPB’s Remittance Rule. The circular is intended to address CFPB concerns regarding fees charged on international money transfers and false claims regarding the speed of such transfers. … Continue Reading
CFPB releases assessment report on remittance rule
By Barbara S. Mishkin on
Posted in Regulatory and Enforcement, Remittance Transfers
The CFPB has released a “Remittance Rule Assessment Report.” The report was issued pursuant to Section 1022(d) of the Dodd-Frank Act which requires the CFPB to conduct a review of a significant rule and publish an assessment report within five years of the rule’s effective date. The remittance report represents the first assessment report issued by the CFPB pursuant to Section 1022(d).… Continue Reading
CFPB finalizes rule to supervise larger participant international money transfer providers
By Keith R. Fisher on
The CFPB has issued a final rule that will allow it to supervise nonbank international money transfer providers that qualify as “larger participants” in the international money transfer market. Consistent with the proposed rule, the final rule defines larger participants as those providers that engage annually in 1 million or more international money transfers. … Continue Reading
CFPB Issues Report on the Use of Remittance Histories in Credit Scoring
By Glen P. Trudel on
On July 3rd, the CFPB released a Report on the Use of Remittance Histories in Credit Scoring (the “Report”). Section 1073(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act required the CFPB Director to study the feasibility of and impediments to using remittance transfer information (i.e.… Continue Reading
CFPB extends comment period on proposal to extend depository institution exception and make other changes to remittance transfer rule
By Barbara S. Mishkin on
Posted in Regulatory and Enforcement, Remittance Transfers
The CFPB has extended the comment period on its proposal to extend for five years the temporary exception in its remittance transfer rule that allows insured depository institutions to estimate fees and exchange rates in certain circumstances and to make several other changes and technical corrections to the rule. Absent the five year extension, the temporary exception would expire on July 21, 2015. … Continue Reading
CFPB proposes extension of remittance transfer rule depository institution exception and other revisions
By Barbara S. Mishkin on
Posted in Regulatory and Enforcement, Remittance Transfers
The CFPB has issued a proposal to extend for five years the temporary exception in its remittance transfer rule that allows insured depository institutions to estimate fees and exchange rates in certain circumstances. The proposal also includes “several clarificatory amendments and technical corrections” to the rule and commentary.
The CFPB’s remittance transfer rule implements Section 1073 of Dodd-Frank, which amended the Electronic Fund Transfer Act to establish new requirements for remittance transfer providers. … Continue Reading
Remittance transfer rule changes unlikely
By Barbara S. Mishkin on
Posted in Regulatory and Enforcement, Remittance Transfers
Industry should not expect to see any material changes to the CFPB’s remittance transfer rule, at least not between now and 2018 when the CFPB is required to review the rule. That’s the view of Isaac Boltansky of Compasspoint, who reached that conclusion based in part on a review of the CFPB’s consumer complaint database. … Continue Reading
CFPB issues proposal to supervise “larger participant” international money transfer providers
By Keith R. Fisher on
We had been expecting the CFPB’s next “larger participant” proposal to be a rule for the auto finance market. Instead, the CFPB issued a proposed rule yesterday that would allow it to supervise nonbank international money transfer providers that qualify as “larger participants” in the international money transfer market. The proposal is based on the CFPB’s Dodd-Frank authority to supervise nonbank entities considered to be “a larger participant of a market for other consumer financial products or services.” … Continue Reading
CFPB to hold webinar on remittance transfer rule
By Barbara S. Mishkin on
Posted in Regulatory and Enforcement, Remittance Transfers
The CFPB has announced that it will be conducting a webinar on the remittance transfer rule on Thursday, November 14, 2013 from 2:30 to 3:30 p.m. ET. Instructions for joining the webinar can be obtained by contacting the CFPB at financialeducation@cfpb.gov.
On November 22, 2013, Ballard Spahr will be conducting a webinar entitled “Getting Wired for Consumer Wire Transfers: Complying with the CFPB’s Remittance Transfer Rule.” … Continue Reading