WASHINGTON (3/2/12)--Credit unions can provide their own insights on how the Consumer Financial Protection Bureau's (CFPB) recently released remittance rule would impact their practices, and how compliance burdens caused by the rule could be mitigated, in a new Credit Union National Association (CUNA) comment call.
The CFPB has issued a proposal to further define certain aspects of the "remittance transfers" final rule under Regulation E, as required by the Dodd-Frank Act. The final rule's requirements will apply to most credit unions and financial institutions that provide consumers with international electronic funds transfer services because it broadly defines the term "remittance transfers" to include virtually all cross-border electronic funds transfers initiated by consumers in the U.S. including Automated Clearinghouse and wire transfers, and products such as the World Council of Credit Unions' IRnet.
The final rule does not apply to most transfers involving credit, debit, and prepaid cards.
The CFPB has also asked for comment on:
- Whether to provide a safe harbor to exempt certain financial institutions and other "remittance transfer providers" from the final rule if they transmit a low number of transfers (e.g., 25 transfers per year); and
- For transfers scheduled in advance, including preauthorized transfers, whether to provide additional flexibility on the required disclosures, including: additional use of estimates for a scheduled one time or first transfer in a series of preauthorized transfers; a longer timeframe for or the elimination of the pre-payment disclosure for subsequent transfers; and other potential changes to the cancellation requirements.
The CFPB expects to complete any further rulemaking on these issues before the final rule becomes effective on Feb. 7, 2013.
Comments on the proposal are due to CFPB by April 9. CUNA will accept comments until March 26.
For the full comment call, use the resource link.