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Unified Agenda 3170-AA33

Disclosures For Remittance Transactions (Regulation E)

Summary

The CFPB published in the Federal Register on February 7, 2012, a final rule to implement section 1073 of the Dodd- Frank Wall Street Reform and Consumer Protection Act, which amended the Electronic Fund Transfer Act (EFTA) to create a comprehensive new Federal consumer protection regime for remittance transfers by U.S. consumers to individuals and businesses in foreign countries. Consistent with the statute, the final rule requires remittance transfer providers to provide certain disclosures, cancellation rights, and error resolution procedures. In August 2012, the CFPB published a final rule providing additional guidance regarding what companies are not subject to the rule because they do not provide remittance transfers in the "normal course of business" and modifying certain requirements as applied to remittance transfers scheduled several days in advance. The CFPB published a proposal in the Federal Register on December 31,2012 in which it proposed to: (1) provide additional flexibility regarding the disclosure of foreign taxes, as well as fees imposed by a designated recipient's institution for receiving a remittance transfer in an account; (2) limit a remittance transfer provider's obligation to disclose foreign taxes to those imposed by a country's central government; and, (3) revise the error resolution provisions that apply when a remittance transfer is not delivered to a designated recipient because the sender provided incorrect or insufficient information, and, in particular, when a sender provides an incorrect account number and that incorrect account number results in the funds being deposited in the wrong account The Bureau also proposed a brief extension of the effective date of the rule until 90 days after the Bureau finalizes the proposal. On January 29, 2013,the Bureau published in the Federal Register a final rule that temporarily delayed the February 7, 2013 effective date of the rule until it finalizes the December 31, 2012 proposal. On April 30, 2013, the CFPB issued a rule that changed the previously-issued final rules in three respects. First, the rule makes optional, in certain circumstances, the requirement to disclose fees imposed by a designated recipient's institution. Second and relatedly, the rule also makes optional the requirement to disclose taxes collected by a person other than the remittance transfer provider. In place of these two former requirements, the rule requires disclaimers to be added to the rule's disclosures indicating that the recipient may receive less than the disclosed total due to the fees and taxes for which disclosure is now optional. Finally, the rule revises the error resolution provisions that apply when a remittance transfer is not delivered to a designated recipient because the sender provided incorrect or insufficient information, and, in particular, when a sender provides an incorrect account number or recipient institution identifier that results in the transferred funds being deposited in the wrong account. The rule also established an effective date of October 28, 2013.

Timeline

7 actions from February 7th, 2012 to July 2013

  • February 7th, 2012
  • April 9th, 2012
    • NPRM Comment Period End
  • August 20th, 2012
  • December 31st, 2012
  • January 29th, 2013
    • Final Rule (Temporary Delay of Effective Date)
  • January 30th, 2013
    • Supplemental NPRM Comment Period End
  • July 2013
    • Supplemental Final Rule

Contacts

  • Eric Goldberg
    Office of Regulations
    Phone 202 435-7700

Federal Register Activity

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