CFPB Launches Education Campaign About New International Money Transfer Protections
Multilingual Multimedia Campaign Focuses on Transparency and New Protections
WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) is launching a nationwide multimedia campaign to inform consumers who send money internationally about new protections that go into effect today. The protections are contained in a rule that was finalized earlier this year.
“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 transfer tens of billions of dollars from the United States to foreign countries each year. These international money transfers were generally not covered by federal consumer protection regulations before the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act expanded the scope of the Electronic Fund Transfer Act to provide protections for consumers who send remittance transfers, and the CFPB has finalized its remittance rule, which implements that statute. The rule takes effect today, October 28, 2013.
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: https://files.consumerfinance.gov/f/201310_cfpb_remittance_campaign_consumer_fact_sheet_english.pdf
A factsheet about the remittance rule is available at: https://files.consumerfinance.gov/f/2013_cfpb_remittance_campaign_stakeholder_fact_sheet_english.pdf
A blog about the remittance rule is available at: https://consumerfinance.gov/blog/send-money-abroad-with-more-confidence/
The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.