updated 05/10/13 01:06 PM
CFPB FINALIZES REMITTANCE RULE DATE
Also Proposes Credit Insurance Rule Delay
The Consumer Financial Protection Bureau (CFPB) announced its international remittance transfer rule will go into effect on Oct. 28—a subject the Leagues will publish a TIPs Bulletin on very soon for credit union CEOs and other managers to use in guiding their compliance operations.
Credit unions had urged an eight-month delay from the original Feb. 7 effective date, which the CFPB granted.
Under the final rule, remittance transfer providers are required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.
The final rule:
  • Makes optional, in certain circumstances, the requirement to disclose fees imposed by a designated recipient's institution.
  • Makes optional the requirement to disclose taxes collected by a person other than the remittance transfer provider.
  • Revises resolution provisions that apply when a remittance transfer is not delivered to a designated recipient due to sender error.
The agency did not revisit the 100 transfers-per-year exemption threshold.
Remittance rule revisions addressing fees and foreign tax disclosures and how financial institutions will cope with account or routing number errors were also released.
Click here to view the CFPB's official announcement and other resources/information.
Credit Insurance Rule Delay Proposal
Additionally, the bureau has issued a proposal seeking comment on whether to delay the June 1 effective date with regard to a provision concerning credit insurance. The bureau says it will be addressing some interpretive issues that have arisen about the provision.
The proposal concerns the implementation of a prohibition on creditors financing credit insurance premiums in connection with certain consumer credit transactions secured by a dwelling. This provision was adopted in the Loan Originator Compensation Requirements under the Truth in Lending Act (Regulation Z) Final Rule, issued on Jan. 20.
Click here to view the proposal.
The bureau welcomes comment during the 15-day period following publication of the proposal in the Federal Register. This proposal follows two that the bureau issued last month to clarify and correct some aspects of the 2013 Escrows Final Rule, the Ability-to-Repay and Qualified Mortgage Rule and the Mortgage Servicing Rules.
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