WASHINGTON (11/28/12)--The Consumer Financial Protection Bureau has announced its intentions to make some changes to its recent final rule on international money transfers--also known as remittances.
The list of expected changes reflects recommendations that the Credit Union National Association (CUNA) had made during almost a dozen meetings with the bureau.
While the agency characterizes these changes as "limited," it is proposing amendments to the final rule that address issues CUNA's Remittances Working Group raised with CFPB Director Cordray on Oct. 18 and in subsequent meetings and during calls.
One will address what should happen if a consumer provides an incorrect account number for a transfer and how remittance providers must disclose certain third-party fees and foreign taxes.
The two other changes will address:
* The disclosure of certain foreign taxes and third-party fees; and
* The disclosure of sub-national, foreign taxes.
The CUNA recommendation not addressed is increasing the current 100 transfers per year exemption. CUNA has been urging that the CFPB significantly increase the exemption level so that many credit unions will not stop providing these services to their members because of the regulatory burdens.
While CUNA will continue working on the exemption issue, CUNA President/CEO Bill Cheney said this new proposal is a welcome development and one that CUNA plans to maximize in order to achieve meaningful relief for credit unions offering remittances services.
CUNA will be preparing a Comment Call on the proposal and coordinating its advocacy efforts with credit union leagues and key CUNA Committee and Council members.
The agency said Tuesday that it expects to extend the effective date of the remittance rule until 90 days after the adjustments are made final.
"We recognize that remittance providers may need time to make sure they're in compliance with the rule. We're expecting the new implementation date to be during spring 2013, and will keep you updated," the CFPB said.
Use the resource link to read the CFPB bulletin.