Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Despite Remittance Rules, CU Will Continue Service
FARMERS BRANCH, Texas (10/30/13)--Saying it is putting its members' needs first, a Texas credit union will continue its international remittances transfer program--even though it and other financial institutions will face more compliance and due diligence regulations under the Consumer Finance Protection Bureau's new Remittance Transfer Rule, which went into effect Monday.

Border FCU, a $120 million asset credit union based in Del Rio, Texas, says it won't stop offering international remittances to its members, despite the new rule. Instead it will tough it out in order to serve its members' needs.
 
Maria Martinez, president/CEO of the $120 million asset credit union, told the Cornerstone Credit Union League that despite the fact the rule requires more compliance and due diligence, remittances are a service that is greatly needed, so it will continue offering the service (Leaguer Oct.  29).
 
"If we were to stop offering remittances, we would be closing the doors on our members who rely on a safe and secure method of getting funds to loved ones," she told the league.
 
Border FCU offers remittances via Directo a Mexico, as well as through Catalyst Corporate FCU.  It is being forced to raise its fee for both services.  The fee for Direct a Mexico will increase to $5 from $3, the credit union said.
 
"Remittances are not a significant revenue generator for us. We offer the service because we recognize that a significant percentage of our membership has family living abroad who depend on the remittances," Martinez said.  "However, in order for us to continue providing the service, our members will have to share in the cost."
 
The Credit Union National Association is seeking information from credit unions about whether the new rules' compliance burdens are forcing closures of or cutbacks in their remittance programs.


RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
1 day ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
1 day ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
1 day ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
1 day ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
1 day ago