New Rule Protects International Wire Transfers

October 26, 2013
CNBC.com 

A new federal law, effective Oct. 28, provides greater protections to people who wire money outside the United States. Companies that provide "remittance transfer" service now must disclose the costs before the transaction is made, provide proof of payment, and offer dispute resolution.

"People sending money to their loved ones in another country should not have to worry about hidden fees," Richard Cordray, head of the Consumer Financial Protection Bureau, said when the agency adopted the rule last year. "With these protections, international money transfers will be more reliable."

The new rule -- authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act -- applies to international wire transfers of $15 or more handled by a bank, thrift, credit union, and most other entities that offer such service. These institutions must provide prepayment disclosures of fees, taxes, and exchange rates for free and provide proof of payment if a transaction is completed. They also must provide an error-resolution process that gives customers up to 180 days to dispute an error. Customers now also have cancellation rights for up to 30 minutes after they pay, for a full refund at no extra charge. Cancellation can apply only when the funds have not been picked up by the designated recipient or deposited into their account.










Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`