WASHINGTON (11/18/13)--The Consumer Financial Protection Bureau's remittance regulations are now effective, and in the aftermath of regulatory implementation, the Credit Union National Association continues to advocate for credit union interests.
"CUNA recently provided additional information to the CFPB on credit unions that plan to stop or reduce remittance transfers, and CUNA appreciates credit unions that have continued to work with us," CUNA Deputy General Counsel Mary Dunn said.
Over the past two years, CUNA's International Remittances Working Group has met with CFPB Director Richard Cordray and agency staff, and CUNA staff have had numerous meetings and telephone conversations with CFPB officials to urge more flexibility for credit unions on remittance issues.
"While CUNA and credit unions supported additional flexibility and the delayed compliance date from the April 2013 remittance final rule, we continue to share concerns we hear from credit unions," Dunn said.
CUNA continues to work with providers to see if they can help credit unions with continuing remittances. CUNA Strategic Services Provider MoneyGram is available to help credit unions provide international transfers that are in compliance with the CFPB rule.
"MoneyGram money transfer services are already trusted by financial institutions around the world who can leverage MoneyGram's network of more than 334,000 locations in nearly 200 countries, including one of the largest network of agents in Mexico and Central America. Start-up is fast via the MoneyGram online Affiliate Program," MoneyGram International Vice President of Banking Solutions Rex Northen noted.
Under the CFPB rule, remittance transfer providers are required to give 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.
A CUNA survey of credit union remittance concerns released in August revealed:
About 35% of respondent credit unions will have to increase service fees;
Eight percent plan to reduce international wire or automated clearinghouse services;
Nearly one-in-four (23%) will discontinue international wire or ACH completely; and
About 6% of respondents will discontinue all types of international remittances.
Other issues highlighted by the survey results include working with correspondent institutions and vendors to implement the disclosures in time, as well as training staff.
The Federal Reserve Banks have also provided additional compliance resources through FedGlobal ACH. This program can help credit unions and others comply with the CFPB requirements.