On September 20, the Consumer Financial Protection Bureau (CFPB or Bureau) announced a proposed rule aimed at amending the disclosure requirements for international money transfers, commonly known as remittances. The proposed amendment is aimed at clarifying for consumers the types of inquiries that may be better handled by their remittance company before contacting the CFPB or the relevant state regulator. The proposed rule will be published in the Federal Register, and the public will have until November 4, 2024, to submit their comments.
The Electronic Fund Transfer Act (EFTA) and Regulation E mandate that remittance companies provide senders with a disclosure at the time of payment, which includes contact information for both state regulators and the CFPB. According to the Bureau, this has led to a significant number of consumers contacting the CFPB with questions that are more appropriately addressed by their remittance provider. In 2023, the CFPB received approximately 1,800 calls per month related to remittance transfers.
The proposed rule introduces several key amendments to the current disclosure requirements:
- Clarified Disclosure Statements:
- The new rule would amend subpart B of Regulation E to require the disclosures to inform consumers that they should contact their remittance transfer provider for specific issues related to their transfer. Only unresolved problems or complaints should be directed to state regulators or the CFPB.
- Enhanced Contact Information:
- The proposed amendments include updating certain model forms provided in appendix A to Regulation E to make the remittance transfer provider’s contact information more prominent and easier to locate. This includes adding the provider’s phone number and website in the header and footer of the model forms.
- Formatting and Consistency:
- Minor amendments to the formatting and consistency of the model forms will be made to ensure uniformity. This includes updating the year in the forms and including the appropriate accents on the Spanish language forms.
The CFPB proposes that the final rule, if adopted, would take effect 60 days after publication in the Federal Register. The Bureau is seeking comments on whether additional time should be provided for mandatory compliance, particularly to allow for translation and implementation of the new disclosures.
