CFPB Extends Comment Deadline for Proposed Temporary Exemption to Remittance Rule

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The CFPB extended the comment period on proposed revisions to its remittance transfer rule that were previously issued in April 2014 (see April 29, 2014 Alert). The comment period was set to expire on May 27, 2014, and will instead now end on June 6, 2014. The proposal, among other things, seeks to extend a temporary exemption under the Electronic Fund Transfer Act, currently due to expire on July 21, 2015. The exemption allows insured depository institutions and credit unions to estimate third-party fees and exchange rates when providing remittance transfers to their accountholders in the event that they are unable to determine the exact amounts. The proposal would extend the exemption until July 21, 2020. In extending the comment period, the CFPB noted that it is seeking to balance the parties’ desire to have additional time to properly respond to the issues raised in the proposal with the need to provide industry and consumers with certainty and ample time to plan in advance of July 21, 2015.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this informational piece (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

 

Topics:  Banks, CFPB, Credit Unions, EFTA, Exchange Rates, Exemptions, Fees, Proposed Amendments, Public Comment

Published In: Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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