Consumer Financial Protection Bureau Proposes Rule to Oversee Larger Nonbank International Money Transfer Providers
On Thursday, January 23, 2014, the Consumer Financial Protection Bureau (the "CFPB") proposed a rule to allow oversight of larger nonbank international money transfer providers for compliance with the CFPB's October 2013 "Remittance Rule," which is designed to protect consumers sending money abroad. The rule is proposed under the authority of Section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").
Although the CFPB already has the authority to oversee compliance with the Remittance Rule of the largest banks and credit unions, this proposed rule would allow oversight of larger nonbank international money transfer providers for the first time. The CFPB would monitor these larger nonbank international money transfer providers for compliance with certain consumer protections such as:
disclosing the exchange rate, fees, the amount of money that will be delivered abroad, and the date the money will be available;
allowing customers the option to cancel a remittance within thirty minutes after payment, for any reason, if the remittance has not already been received; and
investigating and correcting certain errors reported by a remittance sender within 180 days after the transfer.
Read the CFPB press release
Read the proposed rule