Remittances

It’s pretty incredible that you can quickly send money to almost anywhere in the country or abroad. Many people do so on a daily basis and starting today you can submit a money transfer complaint if you have an issue such as:

• Money was not available when promised
• Wrong amount charged or received (Transfer amounts, fees, exchange rates, taxes, etc.)
• Incorrect/missing disclosures or info
• Other transaction issues (Unauthorized transaction, cancellation, refund, etc.)
• Other service issues (Advertising or marketing, pricing, privacy, etc.)
• Fraud or scams

Before you submit

Have this information handy:

• Sender’s name and address
• Recipient’s name and address
• Date of the transfer
• Receipt or transaction number
• Name of the money transfer company, bank, credit union, or other entity that sent the transfer
• The location the money transfer was sent from (for example, if you started the money transfer in a store, the name and address of that store.)

Every complaint we receive helps us understand the challenges facing consumers, and they inform and shape our priorities.

Reading your complaints about money transfers will complement work we have already started in this area, including issuing a rule on international money transfers, which will include a new set of protections for consumers who send money internationally.

Need to submit a complaint in a different language?
Call us at (855) 411-2372 (CFPB). We can help in more than 180 different languages.

Scott Pluta is the Assistant Director for Consumer Response at the Consumer Financial Protection Bureau.

In November, we announced that we would be proposing to make some limited amendments to our new international remittance transfer rule. We also announced that we would be proposing to delay when the rule would take effect until ninety days after we finalized the amendment. Last month, we formally issued our proposal.

The remittance rule was slated to go into effect on February 7, 2013. Today, we are temporarily delaying the effective date of our remittance rule. Thus, the rule will not take effect on February 7. A new effective date will be announced later this year.

The changes in our December 31, 2012 proposal are designed to preserve the new consumer protections while helping remittance transfer providers comply with the rule. The proposal also includes a provision to extend the effective date until 90 days after we issue a revised final rule.

You may submit comments on the remainder of the proposal, including what the new effective date of the rule should be, on or before January 30, 2013. We’ll keep our remittance web page updated with the new effective date when we finalize the substantive issues in our proposal.

Today we issued a bulletin explaining that we intend to propose certain limited adjustments to our rule on international money transfers, as well as a brief extension of the date the rule would become effective.

Some regulated entities identified issues that pose practical challenges in implementing the new law. To address these issues, next month we will propose a narrow set of changes to the remittance rule. We’ll work on a fast track to finalize changes to the rule. The proposed changes would improve implementation of the new law while keeping the important new protections for consumers intended by the Dodd-Frank Act.

The proposed changes will address what should happen if a consumer provides an incorrect account number for a transfer and how remittance providers must disclose certain third-party fees and foreign taxes. Read the bulletin for more detail about the proposed changes.

These proposed changes to the remittance rule are designed to help companies successfully implement the rule’s valuable new protections for consumers. We expect to propose extending the effective date of the rule until 90 days after we issue a final rule on these issues because we recognize that remittance providers may need time to make sure they’re in compliance with the rule. We’re expecting the new implementation date to be during spring 2013, and will keep you updated.

For more information, please see today’s bulletin.

Update 11/27/12: We issued a bulletin about changes to the rule we intend to propose in December 2012.

Our goal is to make financial markets work. A crucial part of reaching that goal is making sure that honest businesses – particularly small businesses – have what they need to understand and comply with our new regulations, which are designed both to help consumers and make a fair playing field for companies that play by the rules.

Today, we’re releasing our small business compliance guide for our international electronic money transfers rule (also known as the remittance rule), which will take effect on February 7, 2013. This guide will make it easier to understand the new requirements. Although the guide is not a substitute for the rule, it highlights issues that businesses, in particular small businesses and those that work with them, should consider while implementing the new requirements.

We need your help to find areas in the guide that could be better.

How can I provide feedback?

Email comments about the guide to CFPB_RemittanceGuide@cfpb.gov. Your feedback is crucial to making sure the guide is as helpful as possible. We would love to hear your thoughts on its usefulness and readability, and about improvements you think are needed.

We would especially like to know:

1) What kind of business do you operate?
2) Generally, what is the size of your business?
3) Where are you located?
4) How useful did you find the guide for understanding the rule?
5) How useful did you find the guide for implementing the rule at your business?
6) Do you have any suggestions for making the guide better, such as additional implementation tips?

What are some other compliance resources?

We are working on a number of projects to help industry understand and comply with the new requirements, including:

• Issuing a list of countries and other areas to which a particular exception to the rule’s disclosure requirements applies,
• Hosting a live webinar on October 16th,
• Answering specific questions at CFPB_RemittanceRule@cfpb.gov and at (202) 435-7700, and
• Releasing the small business guide.

Questions?

You can reach us at (202) 435-7700.

Update 11/27/12: We issued a bulletin about changes to the rule we intend to propose in December 2012.

We held a live session on October 16th to talk about the new requirements for remittance transfer providers.

The rule to implement the consumer protections created by the Dodd-Frank Act for certain electronic transfers of funds to other countries – the remittance rule – will go into effect on February 7, 2013.

You can read CFPB Director Richard Cordray’s full remarks and see the remittance rule presentation slides from the event.

If you missed the event, you can watch below:

The rule to implement the consumer protections created by the Dodd-Frank Act for certain electronic transfers of funds to other countries – the remittance rule – will go into effect on February 7, 2013. We’re undertaking a number of efforts to help industry understand and comply with the new requirements. These include: releasing a list of countries and other areas to which a particular exception to the rule’s disclosure requirements applies, hosting a webinar, answering specific questions, and releasing a small business guide.

What is the countries list?

The remittance rule generally requires disclosure of, among other things, exact amounts to be received in a foreign currency, fees, and taxes, but estimates of these amounts are permitted in several situations. One situation where estimates are allowed is when the provider cannot determine exact amounts because of the laws of the recipient country. We are interpreting the exception regarding the laws of a recipient country to apply to these countries and other areas.

Webinar October 16th

Join us for a free, 90 minute webinar about the new requirements for remittance transfer providers on October 16th at 2:30 p.m. EST. We’ll give an overview of the rule and answer questions about compliance.

The webinar should be useful for money transmitters, banks, credit unions, and other companies that send money abroad for consumers, as well as other organizations that work with or represent consumers who send money abroad. Agents, software providers, foreign banks and others involved in international fund transfers from the United States may also be interested.

• RSVP by October 9 to CFPB_RemittanceRule@cfpb.gov to reserve your spot.
• Send your question about the rule by October 5 to CFPB_RemittanceRule@cfpb.gov. We will answer as many questions as we can during the webinar.

Small business guide

In the coming weeks, we will release a small business compliance guide to give more help to smaller entities that have to comply with the rule.

Questions?

While we expect to answer many questions at the webinar, our team can also answer additional questions about the rule. You can reach us at (202) 435-7700.