Providing consumers with clearer information about the types of questions that may be better handled by their remittance company before contacting regulators is the aim of a proposed rule issued Friday by the federal consumer financial protection agency.
The Consumer Financial Protection Bureau (CFPB) said the proposal, out for comment until Nov. 4, includes a “narrow amendment” to disclosure requirements for certain remittances, or international money transfers. The agency indicated that the proposal will make it more efficient to answer consumer questions about the money transfers.
The bureau said the proposal would amend certain disclosures to clarify that consumers should contact their remittance company for issues specific to their money transfer. “The proposal can potentially save consumers time by resolving their inquiries more quickly,” the CFPB asserted. “Additionally, it may reduce the number of inquiries sent to states and the CFPB that would be more appropriately addressed initially by the providers themselves.”
The agency noted that the Electronic Fund Transfer Act (EFTA) and Regulation E require remittance companies to give senders a disclosure at the time of payment, including on a receipt. The disclosure, the CFPB said, must include contact information for both state regulators and the CFPB.
CFPB Proposes Amendment to Remittance Transfer Rule