Information Due to CFPB on Remittance Rule this Friday

The Consumer Financial Protection Bureau (CFPB) issued a Request for Information(RFI) to gather feedback on potential changes to the Remittance Rule (Rule). An RFI helps inform the Bureau on whether it should undertake rulemaking activities. Information is due this Friday, June 28th.

The RFI addresses two aspects of the Rule.

First, the definition of a “remittance transfer provider.” Currently, the Rule applies to credit unions that provide more than 100 remittances in both the prior and current calendar years. The RFI seeks information and evidence related to the scope of the coverage of the Rule, including whether to change the safe harbor threshold and whether an exception for small financial institutions may be appropriate.

Second, the Bureau is requesting information about the expiration of a temporary exception in the Rule that allows exchange rate and fee estimates in the required disclosures. The temporary exception expires July 21, 2020. The Electronic Funds Transfer Act (EFTA), as amended by the Dodd-Frank Act (DFA), does not provide the Bureau authority to extend the exception beyond this date. The Bureau will use information collected to determine potential next steps to help mitigate the effects related to the expiration of the temporary exception.

The Bureau has received several other suggestions for changes to the Rule to improve its effectiveness in helping consumers or to reduce the burden it may impose. However, due to the time sensitivity of the expiration of the temporary exception, this RFI is limited to seeking information on the two issues described above.

To submit your comments, click here.