CFPB wants feedback on remittance rule

The Consumer Financial Protection Bureau has issued a request for information on its remittance rule.

The Consumer Financial Protection Bureau has issued a request for information on its remittance rule.

The rule requires, among other things, that companies disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.

The bureau is requesting information on two aspects. First, the agency wants comments on reducing the list of remittance transfer providers which the rule covers. Specifically, the bureau is seeking information about the number of remittance transfers a provider must make to provide them in the normal course of business, and information on incorporating a small financial institution exception.

Second, the bureau is asking for information about the expiration of a temporary exception that allows certain insured institutions to estimate the exchange rate and certain fees they are required to disclose when sending remittance transfers.

The statutory provision authorizing the temporary exception expressly limits its length and does not give the CFPB the authority to extend the exception beyond July 21, 2020. The agency will use the information in determining potential next steps, including considerations related to the expiration of the temporary exception.

Comments must be submitted by June 28.