October 28 is CFPB Remittance Rule effective date
October 28 will be the effective date for the Consumer Financial Protection Bureau's (CFPB) remittance regulations, the bureau announced on April 30.
Under the final rule published last February, remittance transfer providers will be required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.
The CFPB has provided a safe harbor exemption from the rule for remittance providers that transact 100 or fewer remittances per year.
The Credit Union National Association's International Remittances Working Group has met with CFPB Director Richard Cordray and his senior staff, and CUNA senior staff have had numerous meetings and telephone conversations with CFPB officials to advocate for credit unions on remittance issues.
Remittance rule revisions addressing fees and foreign tax disclosures and how financial institutions will cope with account or routing number errors were also released on April 30.