We recently reported about the Consumer Financial Protection Bureau’s (CFPB) final remittance rule issued on August 20, 2012 to implement another facet of the Dodd-Frank Act. The rule is directed to companies that send money abroad for consumers, as well as other organizations that work with or represent consumers who send money abroad, including agents, software providers, foreign banks and others involved in international fund transfers from the United States.
The remittance rule was scheduled to take effect on February 7, 2013.
The U.S. Consumer Financial Protection Bureau now says it will revise its rule for international money transfers. The move follows bank complaints that CFPB’s remittance rule could push drive up costs to the point of running of them out of the business.
CFPB now plans to issue a revision this month and allow time for comments before the revised rule takes effect. The revised rule is expected to address what should happen if a consumer provides an incorrect account number for a transfer and how remittance providers must disclose third-party fees and foreign taxes.
The remittance rule is another complicated facet of implementing the provisions under Dodd-Frank, and is supposed to improve consumer understanding of costs. The CFPB anticipates the new effective date will be some time in the spring of 2013.
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