Removing Barriers Blog

CUNA Urges CFPB to Increase Exemption Threshold for Remittance Rule
Posted May 19,2017 by CUNA Advocacy

Today, CUNA’s Senior Director of Advocacy and Counsel, Luke Martone sent a letter to the Consumer Financial Protection Bureau in regard to their assessment of the remittance transfer rule.  As the CFPB does their mandatory review of the rule, CUNA urges the Bureau to increase the threshold from 100 to 1,000 remittances annually. 

The letter gives background on the rule and demonstrates how the rule is unintentionally harming consumers, and urges the Bureau to use its authority to increase the safe harbor threshold.  Unfortunately, the harm is generally in the form of decreased availability of remittance services and/or increased prices where such services are available. 

It is clear the remittance rule has had the unintended consequence of decreasing the availability of remittance transfer services. Based on CUNA’s extensive outreach over the past three and a half years, there is consensus that a substantial number of credit unions have been forced out of the market due to the compliance resources necessary to continue offering the service. 

While CUNA supports the objective of the rule, there are significant concerns regarding the unintended consequences the rule is having on consumers and those entities—including credit unions—striving to meet their needs.   CUNA will continue to work with the CFPB and Congress on common-sense regulations and reforms.