CFPB Proposes Rule Change So Banks Can Send Your Money Overseas

April 15, 2014
The Consumer Financial Protection Bureau on April 15 announced a proposed update to its global money transfer rule.

Among other consumer protections, the regulation currently compels banks to reveal third-party fees and any exchange rate fees that may apply to a transaction. Federally insured financial institutions, however, may estimate the fees and exchange rates for account holders if, for reasons beyond their control, they are unable to determine the precise amounts. That exception is slated to expire in July of next year, which the CFPB says would make it virtually impossible for some insured institutions to know the exact fees and exchange rates associated -- meaning they would have to stop doing transfers in some parts of the world.

To avoid this, the CFPB wants to renew the exception until July 2020. Doing so, it believes, would give institutions more time to develop reasonable solutions for providing customers with exact fees and exchange rates for all remittance disclosures.

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