The Remittance Transfer Rule (“Remittance Rule”), Subpart B of Regulation E, 12 C.F.R. §§ 1005.30 to 1005.36, requires transfer providers to provide prepayment disclosures to consumers prior to paying for a remittance transfer. U.S. Senators Elizabeth Warren (D-Mass.),Dianne Feinstein (D-Calif.), Brian Schatz (D-Hawaii), Jack Reed (D-R.I.), and Alex Padilla (D-Calif.) sent a letter to CFPB Director Rohit Chopra to request that the Remittance Rule be modified to require transfer providers to disclose the true cost of remittance payments so consumers can comparison shop.… Continue Reading
The CFPB has issued a final rule amending its remittance rule. The final rule is effective July 21, 2020.
The key amendments consist of the following:
- Safe harbor threshold. Currently, the rule’s safe harbor threshold removes from the rule’s coverage an entity that provided 100 or fewer remittance transfers in the previous calendar year and provides 100 or fewer remittance transfers in the current calendar year.
The CFPB has issued a policy statement regarding its approach to supervision and enforcement of remittance transfers during the COVID-19 pandemic.
The EFTA, as implemented by the CFPB’s remittance rule, provides insured depository institutions with a temporary exception that allows them, under certain conditions, to disclose estimates of the exchange rate and covered third-party fees instead of exact amounts. … Continue Reading
The CFPB has proposed several amendments to its remittance rule. Comments on the proposal must be filed no later than January 21, 2020.
The proposed amendments are:
- An increase in the rule’s safe harbor threshold that currently removes from the rule’s coverage an entity that provided 100 or fewer remittance transfers in the previous calendar year and provides 100 or fewer remittance transfers in the current calendar year.
The CFPB has published a notice and request for comments seeking information to inform its consideration of possible changes to its rule on remittance transfers. Comments are due by June 28, 2019.
The RFI sets forth a series of questions related to the following topics:
- Expiration of the temporary exception. The EFTA provides a temporary exception set to expire on July 21, 2020, that allows insured depository institutions and credit unions to provide estimates of certain amounts required to be disclosed, such as the exchange rate and certain fees.
The CFPB has issued a notice regarding its plans to conduct an assessment of its remittance transfer rule which became effective on October 28, 2013.
The assessment is being conducted under Section 1022(d) of the Dodd-Frank Act which requires the CFPB to conduct an assessment “of each significant rule or order adopted by the Bureau under Federal consumer financial law.” … Continue Reading
In its Winter 2016 Supervisory Highlights, which covers supervision work generally completed between September and December 2015, the CFPB highlights violations found by CFPB examiners involving consumer reporting, debt collection, mortgage origination, remittances, and student loan servicing.
The report states that recent non-public supervisory actions have resulted in restitution of approximately $14.3 million to more than 228,000 consumers. … Continue Reading