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CFPB Proposes Rule to Oversee Larger Nonbank International Money Transfer Providers
Friday, January 24, 2014 6:55 AM

Yesterday, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would allow it to supervise certain nonbank international money transfer providers for the first time. The proposed rule would bring new oversight to larger nonbank international money transfer providers, to make sure they are adhering to the CFPB’s new protections for consumers sending money abroad.

Under the proposal, CFPB examiners would be able to examine larger nonbank international money transfer providers for compliance with the Remittances Rule. Examiners would be looking to ensure that these nonbanks are offering protections that are now required such as:

  • Better Disclosures: Under federal law, remittance transfer providers must generally disclose information about the exchange rate, fees, the amount of money that will be delivered abroad, and the date the money will be available. Consumers generally receive these disclosures in English and sometimes in other languages.
  • Option to Cancel: Typically, consumers have at least 30 minutes after payment to cancel a remittance if it has not yet been received. If they cancel within the 30-minute window, they will get their money back regardless of the reason the consumer wants to cancel.
  • Correction of Errors: Remittance transfer providers are held accountable for certain types of errors. If a remittance sender reports a problem with a transfer within 180 days, the provider must generally investigate and correct certain errors. Companies that provide remittance transfers may also be responsible for mistakes made by their agents.

Comments on the proposed rule may be submitted through www.regulations.gov for 60 days after its publication in the Federal Register.

The proposed rule is available on CFPB’s website. A fact sheet on the proposed rule is also available online.