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CFPB NPRM on Remittance Rule
On Tuesday, December 3, 2019, the CFPB issued a Notice of Proposed Rulemaking (NPRM) related to the Remittance Rule (Rule). Under the current Rule, companies that provide remittance transfers in the normal course of business are required to disclose to consumers the fees and exchange rates applied to transfers. The Rule also allows banks to estimate certain fee and exchange rate information instead of disclosing exact amounts in certain circumstances, but this exception is slated to expire in July 2020.
The NPRM released today would raise the current threshold of 100 or fewer transfers to 500 per year, a change that could reduce the compliance burden for banks and preserve consumer ability to send remittances from their bank accounts to certain destinations. The proposal would also allow certain banks to continue providing estimates under conditions where it could be economically infeasible to provide exact disclosures.
There will be a 45 day comment period after the NPRM is published in the Federal Register.