CFPB’s first big rule protects money sent overseas

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Wednesday, February 15th, 2012

CFPB Director Richard Cordray is making it clear that CFPB is hitting the ground running – yesterday he posted a summary of the agency’s first big rulemaking, which protects money transfers to other countries.  These transfers, also called “remittances,” had few legal protections before despite the fact that U.S. residents send billions of dollars all over the world to help their friends and family.

The CFPB’s new remittance rule provides strong federal protections, including the following:

Better Disclosures: With this rule, remittance transfer providers must generally disclose the exchange rate, any fees related to the remittance, the amount of money that will be delivered abroad, and the date the money will be available.

Option to Cancel: Typically, consumers will have at least 30 minutes after payment to cancel a remittance.

Correction of Errors: With this rule, money transfer providers will generally be held accountable for errors. If a remittance sender reports a problem with a transfer within 180 days, the provider must generally investigate and correct any errors.

To read Cordray’s full blogpost, click here.

To learn more about our work to promote financial reform and a strong CFPB, click here.

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