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CFPB Updates International Money Transfer Rule

The Consumer Financial Protection Bureau (CFPB) updated its international money transfer rule to make the transfer process easier for institutions that handle 100 or fewer remittances a year.

“We recognize that in regulations, one size does not necessarily fit all,” said CFPB Director Richard Cordray. “The final remittance rule will protect the overwhelming majority of consumers while making the process easier for community banks, credit unions, and other small providers that do not send many remittance transfers.”

The Bureau’s final remittance rule will take effect Feb. 7, 2013. The rule implements new protections under the Dodd-Frank Wall Street Reform and Consumer Protection Act that require remittance transfer providers to disclose fees upfront, as well as the exchange rate and the amount to be received by the recipient. Disclosures must generally be provided when the consumer first requests a transfer and again when payment is made. The rule also provides consumers with error resolution and cancellation rights.

The Bureau’s final remittance rule will take effect Feb. 7, 2013. The rule implements new protections under the Dodd-Frank Wall Street Reform and Consumer Protection Act that require remittance transfer providers to disclose fees upfront, as well as the exchange rate and the amount to be received by the recipient. Disclosures must generally be provided when the consumer first requests a transfer and again when payment is made. The rule also provides consumers with error resolution and cancellation rights.

The Bureau concluded that those institutions that consistently conduct 100 or fewer remittance transfers per year do not provide transfers in the “normal course of business” and therefore are not subject to the new requirements. However, if a company that provided 100 or fewer remittance transfers in the previous year provides more than 100 remittance transfers in the current year, the rule provides a reasonable transition period to come into compliance.

The final rule also adjusts certain rules regarding remittance transfers that consumers schedule several days in advance of the transfer. The changes are designed to address concerns that remittance transfer providers might stop offering transfers scheduled in advance due to concerns about compliance costs under the new requirements.

The new Final Rule is available here: http://files.consumerfinance.gov/f/201208_CFPB_remittance_rule.pdf

 

March 1, 2013 Marks Treasury's Switch to All-electronic Federal Benefit Payments

The U.S. Department of the Treasury is phasing out paper checks and requiring federal benefit recipients to get their money electronically by March 1, 2013. Your members have two choices. They can choose to get their federal payment by Direct Deposit via ACH to a credit union account or they can opt for a Direct Express® Debit MasterCard® card account.

March 1, 2013 may seem like a long way off but it's not when you consider the large impact this initiative will have on every U.S. citizen who receives Social Security payments and other federal benefit payments. How can you help your members prepare now for this March 1, 2013 deadline? By visiting www.GoDirect.org. This website has all the tools and resources you need to help your customers/members make the switch safely, quickly, and easily.

Valuable Resources & Planning Tools

Free resources and planning tools for you, your staff, customers, and members can be found at www.GoDirect.org.

GoDirect Frequently Asked Questions: http://www.godirect.org/about-faq/.

GoDirect Free Promotional Countdown Information for Financial Institutions: http://www.godirect.org/partners/financial-institutions/.

Make sure ALL your members who receive Social Security and other federal benefit payments are aware of the March 1, 2013 deadline.

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