CFPB Imposes New Rules on Remittance Disclosures

January 23, 2012
American Banker 
consumer financial protection bureau news

The Consumer Financial Protection Bureau issued a final rule Friday that will impose new disclosure requirements for remittance transfers. Under the rule, remittance transfer providers must disclose the fees, the exchange rate and the amount of money to be received by the recipient. Providers must disclose the information when the customer first requests the transfer, and again when the payment is made. Consumers will generally have 30 minutes after payment is made to cancel a transaction. The new rules, required by Dodd-Frank, provide for a one-year implementation period. CFPB is also seeking comment on whether to make a few final adjustments to the rule, including setting a threshold that would minimize the impact of the regulation on community banks, credit unions and other companies that do not normally process the transactions.

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