CFPB Releases Guide to New Rules on International Money Transfers
By Consumers Union on Friday, October 19th, 2012
This week, the Consumer Financial Protection Bureau (CFPB) released a guide for small businesses on its remittance rule, which will protect consumers who send money electronically to foreign countries starting February 2013. The guide explains the key provisions of the rule and highlights important issues businesses should consider as they put the new rule into practice.
Under the new rule, remittance providers generally have to provide consumers the following important protections:
- Disclosures showing actual exchange rates, fees, and amount of money to be delivered before you make the payment;
- A receipt confirming the payment;
- The right to cancel the transaction within 30 minutes of making the payment;
- The right to dispute errors and get your money back if the money doesn’t arrive as promised.
These protections apply whether the consumer is using a money transmitter (like Western Union) or a bank or credit union. However, there is a slight loophole: businesses that perform 100 or fewer remittances per year are exempt.
For more information on where to get the best deal when sending money abroad, read this article from Consumer Reports.