Removing Barriers Blog

CFPB Issues Remittance Rule Proposal
Posted December 03, 2019 by CUNA Advocacy

In a positive development for credit unions, the Bureau issued a notice of proposed rulemaking (NPRM) to amend the Remittance Transfer Rule.   

CUNA, leagues, and credit unions have raised the need to amend the remittances rule in multiple in-person meetings with CFPB leadership in recent years. Recently, CUNA submitted a letter to the Bureau calling for the “normal course of business” threshold to be raised. 

The CFPB’s NPRM would increase the Rule’s “normal course of business” safe harbor threshold from 100 remittance transfers to 500 remittance transfers annually. According to a release, this threshold increase would “reduce burden on over 400 banks and almost 250 credit unions that send a relatively small number of remittances.”

The NPRM also creates two new exceptions that would permit insured institutions to use fee estimates in required disclosures if certain conditions are met. The CFPB is requesting further comment on the rule’s safe harbor countries list.

To supplement the proposal, the Bureau has also posted a summary of the proposed rulemaking, a table of contents, and an unofficial redline of the proposed amendments to the Remittance Transfer Rule. Those resources are available here