CFPB Seeks Public Comment to Assess Remittance Rule
Tue 21 Mar, 2017 / by McIntyre & Lemon / Client Alerts
03/21/17 – The CFPB has released a plan to assess the effectiveness of their remittance rule, which went into effect on October 28, 2013.
Billions of dollars are sent to foreign countries each year by US consumers. These international money transfers are known as remittances. With the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Congress established new standards for remittance transfers and authorized the CFPB to issue rules that would make these standards clear and effective.
The remittance rule requires companies to give accurate disclosures to consumers before they pay for a remittance transfer. It also requires remittance transfer providers to investigate disputes and remedy certain errors. An important objective of the rule is to provide consumers with better information for comparison shopping and to generally improve the predictability of remittance transfers for consumers.
The Dodd-Frank Act requires the Bureau to conduct an assessment of some of the rules within five years after they take effect. The CFPB will issue a report of the assessment of the remittance rule in the fall of 2018. As required by law, the assessment will address the rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act and the specific goals of the remittance rule, using available evidence and data.
The CFPB is seeking public comment on their plan, suggestions for sources of data, and general information that would help with the assessment.
Comments on the plan will be due 60 days after it is published in the Federal Register.