Published: January 2013

Comments to the CFPB opposing proposed relaxation in remittance rules

The Consumer Financial Protection Bureau (“CFPB”) has proposed three reductions in consumer protections for remittance senders. The proposed changes seriously, and erroneously, undermines the critical new protections for international remittances required by Congress in 2010 as part of the Dodd Frank Act.

The Consumer Financial Protection Bureau (“CFPB”) has proposed three reductions in consumer protections for remittance senders: the first proposed reduction relates to whether the sending remittance provider is responsible for disclosing a tax imposed on the receipt of the remittance other than a national tax; the second proposed change would allow the initial disclosure to the sender to not include a charge imposed by the recipient bank on the recipient.

Given the extensive accessibility to all types of information available in this sophisticated technological age, the coalition does not agree that the necessary information could not be made available to remittance transfer providers. We urge the CFPB to make both of these two changes temporary in nature, thereby providing strong incentives to the industry to create databases with the information necessary to comply with the delayed disclosure requirements.

The Coalition's comments primarily address this aspect of the proposed regulations:

A. Industry Needs to be Incentivized to Reduce Losses

B. The Rule Should Require the Development of Security Procedures

C. UCC’s Article 4A Provisions Are Not the Appropriate Basis for Protections for Remittance Senders

D. UCC Articles 3 and 4 Provide Relevant Guidance for Where the Loss Should Fall

E. The Consumer Should Not Bear the Loss

F. The EFTA Error Resolution Procedure Applies to Incorrect Account Numbers

Lead Organization

NCLC

Other Organizations

Consumer Action | National Association of Consumer Advocates | National Legal Aid and Defender Association | U.S. PIRG | California Reinvestment Coalition | Legal Assistance Foundation of Chicago | Empire Justice Center of New York | Legal Services of New York City | Neighborhood Economic Development Advocacy Project (NEDAP) | North Carolina Justice Center | South Carolina Appleseed Legal Justice Center | Virginia Citizens Consumer Council | Mountain State Justice of West Virginia

More Information

For more information, please visit NCLC's website

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Comments to the CFPB opposing proposed relaxation in remittance rules   (FinalRemittanceCommentstoCFPB.pdf)