On Tuesday, the CFPB announced that it would delay the effective date of its remittance rules scheduled to take effect on Feb. 7, setting the rule back further after a delay in November.
The CFPB said that a new effective date for the rule would be announced later on in the year, 90 days after the agency has issued its revised final rule, according to Credit Union Times.
A number of industry groups, including the American Bankers Association, the Clearing House Association, the Consumer Bankers Association, the Financial Services Roundtable, the Independent Community Bankers of America, NACHA—The Electronic Payments Association and the National Association of Federal Credit Unions, urged the CFPB in a recent letter to delay the rule, saying that 90 days may not be enough time to allow firms to come into compliance.
“We have heard concerns that, depending on the requirements of the final rule, the proposed 90 day period may not be sufficient to allow remittance transfer providers to develop, implement and test changes in accordance with their compliance and risk management programs,” the groups said, Credit Union Times reports. “The changes that remittance transfer providers must make to their systems and processes in order to comply with the rule are complex and time intensive.”
Under the CFPB rule, remittance transfer providers would be required to disclose exchange rates, taxes and transaction fees associated with the transfer. The rule also allows consumers a degree of protection through cancellation and error resolution rights.