110th CONGRESS, LEGISLATIVE ISSUES A - Z
Principles of Fair Dealing in Wire Transfers
The U.S. Census Bureau has indicated that almost 12% of the U.S. population is foreign-born. Many of these individuals provide a constant flow of dollars back into their home countries that have enabled their family members to improve their standard of living. However, the potential impact of these wire transfer inflows is weakened as a result of the exorbitant fees (up to 28 percent of the transfer) and poor exchange rates that are offered by existing wire transfer companies.
More than 200 U.S. credit unions already provide wire transfer services with more than 650 points of service since the introduction of IRnet (International Remittance Network). WOCCU, CUNA and its member credit unions have partnered with Travelex Money Transfer and VIGO Remittance Corporation of New York to provide safe and affordable wire transfers to over 40 countries.
In the areas of disclosure, advertising, and services, CUNA has developed a set of principles, or guidelines, to assist credit unions in providing wire transfers in an open and truthful manner, without legislative or regulatory mandates.
7 Principles for Conducting Wire Transfers
This Credit Union provides current exchange rate information on both the sending and receiving ends before conducting a transaction.
This Credit Union discloses any fees associated with conducting the transaction before the transaction occurs.
This Credit Union verifies and discloses the exact amount of foreign currency to be received by the recipient in the foreign country.
This Credit Union discloses at the time of transaction when the funds will be available to the recipient.
This Credit Union provides examples of fees associated with wire transfer transactions to specific countries, either as part of an advertising campaign or flyers available at the credit union.
This Credit Union encourages consumers to compare rates, fees and practices with other wire transfer providers.
This Credit Union provides consumers a brochure outlining the remittance process, average fees to select countries, and a list of the countries covered under the wire transfer service.
