On September 20, 2024, the CFPB issued a proposed rule with a narrow amendment to disclosure requirements for certain international money transfers, or remittances. The proposed change aims to ensure that consumers sending a remittance transfer have information about the types of inquiries that may be most efficient to direct to the CFPB and the State agency that licenses or charters their remittance transfer provider.
The Electronic Fund Transfer Act and Regulation E require remittance companies to give senders a disclosure at the time of payment, including on a receipt. The proposed rule would amend certain disclosures to clarify that consumers should contact their remittance company for issues specific to their money transfer. In particular, the CFPB is proposing to amend subpart B of Regulation E, at section 1005.31(b)(2)(vi), to require that applicable disclosures, including the receipt and combined disclosure, inform senders of remittance transfers that they can contact the State licensing agency of the remittance transfer provider and the CFPB with unresolved problems with the transfer or
complaints about the remittance transfer provider, instead of the current statement that informs senders that they can contact such agencies with questions or complaints. In addition, the CFPB proposes conforming changes to this statement on model forms A-31, A-32, A-34, A-35, A-37, A-39, and A-40 provided in Appendix A to Regulation E.
The CFPB seeks comments from the public and all interested stakeholders and will accept comments until November 4, 2024.
Read the CFPB’s press release here.
The proposed rule can be found here.