Consumer watchdog updates money transfer rules

Tuesday, August 07, 2012

The Consumer Financial Protection Bureau (CFPB) released a final rule today pertaining to remittances, or international money transfers. The revised rule takes effect Feb. 7, 2013.

Remittance providers are required to disclose up front - money transfer fees and taxes - exchange rate - amount being received by the recipient - name, telephone number(s), and website of remittance provider

Disclosures generally must be made when the consumer first requests a money transfer, and again when payment is sent. Companies that transfer 100 or fewer remittances per year are exempt from the new requirements.

The rules apply to remittance transfers for: - more than $15 - made by a consumer in the United States - sent to a person or company in a foreign country

Consumers also have the right to cancel a remittance - within 30 minutes after paying for a money transfer - at least three business days before a scheduled money transfer

Under the Electronic Funds Transfer Act (EFTA), consumers have the right to dispute and resolve errors if a sender notifies a remittance provider within 180 days of delivery of a money transfer.

To review the new final rule visit: http://files.consumerfinance.gov/f/201208_CFPB_remittance_rule.pdf