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Border FCU Says Remittance Transfer Rule Won't Deter it from Offering Remittances
Tuesday, October 29, 2013 6:50 AM

The Remittance Transfer Rule went into effect yesterday, and despite the fact that the remittance rule requires more compliance and due diligence, Maria Martinez, president and CEO of Border FCU, says it’s a service that is greatly needed; therefore, Border FCU will continue to offer remittances to its members.

“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,” notes Martinez.

According to Martinez, Border FCU offers remittances via Directo a México, as well as through Catalyst Corporate FCU. The credit union is being forced to raise its fee for both services. The fee for Directo a México, for example, will increase from $3 to $5.

“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,” adds Martinez. “However, in order for us to continue providing the service, our members will have to share in the cost.”

To ensure consumers understand what this rule means to them, the Consumer Financial Protection Bureau (CFPB) is launching a nationwide multimedia campaign.

“Knowing how the new rules protect consumers is critical for those who send money abroad,” said CFPB Director Richard Cordray. “Through clear, upfront information in several languages, this campaign will help educate and empower those consumers who send international money transfers.”

Consumers who make transfers covered by the new remittance rule will receive a number of new protections, including:

  • Free, upfront information about the exchange rate, fees, and taxes they will pay
  • Information on the amount to be received
  • The right to cancel most transfers within thirty minutes at no cost
  • 180 days to report errors to the company, the right to an investigation, and a remedy for certain types of errors

As part of the campaign, the CFPB will provide posters, brochures, and other printed materials to community groups, immigrant organizations, consulates, and other government agencies. Interested financial services companies also will be able to order or download the materials, which will be available in five languages – English, Spanish, Chinese, Tagalog, and French-Creole.

The Bureau also has added several new answers about international money transfers and the new protections to Ask CFPB, the Bureau’s online question-and-answer database at www.consumerfinance.gov/askcfpb, and its Spanish language website, www.consumerfinance.gov/es.

The CFPB will engage consumers online, including through social media to discuss the rule, and encourage other key stakeholders to do the same.

A consumer summary of the remittance rule is available at: http://files.consumerfinance.gov/f/201310_cfpb_remittance_campaign_consumer_fact_sheet_english.pdf

A factsheet about the remittance rule is available at: http://files.consumerfinance.gov/f/2013_cfpb_remittance_campaign_stakeholder_fact_sheet_english.pdf

A blog about the remittance rule is available at: http://consumerfinance.gov/blog/send-money-abroad-with-more-confidence/