In a Monday letter to the CFPB, Fred Becker, the president and CEO of the National Association of Federal Credit Unions, urged the federal watchdog to delay the implementation of its international remittance rule.
In response to a request for comment on the CFPB’s proposal to temporarily delay the effective date of the final rule and the implementation of the rule until 90 days after changes are finalized, Becker said that NAFCU supports both delays but added that “NAFCU does not believe this proposed change will constructively or completely solve the problems associated with the remittance transfer rule.”
Becker did, however, urge the CFPB to extend the 90-day delay of the rule’s effective date in order to allow credit unions enough time to comply with the new requirements and to exempt regulated credit unions or, alternately, small entities as defined by the Small Business Regulatory Enforcement Fairness Act, from the final rule.
Under the CFPB’s remittance transfer rule, providers are required to provide customers with pre-payment disclosures related to the exchange rate, fees and taxes associated with a money transfer. The CFPB proposed changes to the rule’s reporting and dispute resolution requirements last month.
Additionally, Becker said that credit unions already face a significant compliance burden, adding that some providers will be forced to discontinue their remittance programs or increase member fees.