Remittance Transfers under the Electronic Fund Transfer Act (Regulation E)
The Electronic Fund Transfer Act (EFTA), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), establishes certain protections for consumers sending international money transfers, or remittance transfers. The Bureau of Consumer Financial Protection’s (Bureau) remittance rule in Regulation E (Remittance Rule or Rule) implements these protections. The Bureau is proposing changes to the Rule to mitigate the effects of the expiration of a statutory exception that allows insured institutions to disclose estimates instead of exact amounts to consumers. That exception expires on July 21, 2020. In addition, the Bureau is proposing to increase a safe harbor threshold in the Rule related to whether a person makes remittance transfers in the normal course of its business, which would have the effect of reducing compliance costs for entities that make a limited number of remittance transfers annually.
|Date proposed:||Dec. 3, 2019|
|Comments due date:||
Jan. 21, 2020
|Final rule effective date:|
|Rule compliance date:|
|Related Reg Report item(s):||Proposal would allow estimates for remittance fee disclosures; raises ‘safe harbor’ to 500 per year|