CFPB Introduces Revised International Remittance Transfer Rule (Misc News: December 21, 2012)
After months of advocacy with CUNA and the MCUL & Affiliates, the CFPB published proposed revisions to the final rule on International Remittance Transfers on Friday.
The rule was scheduled to take effect Feb. 7 but with the new revisions, the CFPB is proposing an extension of the implementation to 90 days after the final rule is issued. Click here to read the proposed rule.
According to the CFPB, the new international remittance proposal will:
- Provide additional flexibility and guidance on how fees and taxes imposed by a person other than the remittance transfer provider may be disclosed;
- Allow credit unions to estimate some foreign regional, provincial, state and other local taxes and disclose these estimated amounts to members in the required disclosures; and
- Further define and exemplify when account-related fees not specifically related to the remittance transfer can be excluded from the disclosure.
The new proposal also provides credit unions with liability protection in the event the member provides an incorrect account number for the funds transfer. The proposal states that if the credit union can demonstrate the member provided an incorrect account number, and other conditions are also satisfied, the credit union is not liable to reimburse the member. In this circumstance the credit union must still try to recover the funds for the member.
The CFPB believes that the proposed modifications to the Final International Remittance Transfer Rule will “facilitate compliance, while maintaining the rule’s valuable, new consumer protections and ensuring that they can be effectively delivered to consumers.”