The CFPB has issued a proposed rule with a small amendment to disclosure requirements for certain international remittances and money transfers.
The bureau is seeking public comments on a proposed amendment that is intended to provide clearer information about the types of inquiries that might be better addressed by remittance companies before contacting the bureau or relevant state regulator.
The Electronic Fund Transfer Act (EFTA) and Regulation E require remittance companies to provide consumers with a disclosure at the time of payment—including a receipt for the transaction. That disclosure must include contact information for state regulators and the CFPB.
The proposed rule attempts to clarify that consumers should contact their remittance company for issues specific to their money transfer. CFPB officials said the proposed rule may save consumers time by resolving their issues more quickly. In addition, the rule might reduce the number of inquiries sent to states and the CFPB that would more appropriately be addressed initially by the remittance companies themselves, according to the bureau.
CFPB officials said they had tested model disclosures with the language contained in the proposed rule.
“The CFPB seeks comment on whether the proposed changes will provide helpful information to senders and what, if any, impact these proposed changes may have on consumers, remittance transfer providers, and State licensing agencies,” the bureau said.
In issuing the proposal, CFPB officials said that comments about other topics related to remittance transfers, Regulation E, the ETFA are outside the scope of the current rulemaking.
Comments on the proposed rule are due Nov. 4. If adopted as a final rule, the proposal would go into effect 60 days after its publication in the Federal Register.