The CFPB released on Thursday an updated compliance guide for small businesses related to the agency’s electronic money transfers—or remittance rule, which is scheduled to take effect on Oct. 28.
The agency also released a video that gives an overview of the rule, recent changes to the rule and the CFPB’s response to questions regarding the rule’s interpretation and implementation.
Additionally, the CFPB said it would make a technical correction to the rule to clarify and correct an error to amendments issued in May.
Under the current rule, providers must refund or reapply a new transfer in the amount provided by the sender if the remittance transfer was not properly transmitted. Providers are also allowed to deduct fees or taxes collected from the transfer from the amount refunded or applied to a new transfer.
To clarify the provision, the CFPB revised the rule to state that, in the event that a remittance error occurred because the sender provided incorrect or insufficient information, the provider “shall provide the remedies required by paragraphs (c)(2)(ii)(A)(1) and (B)” within three business days.
The provider may agree to the sender’s request that the “’funds be applied towards a new transfer, rather than be refunded, if the provider has not yet processed a refund.’”
The CFPB will publish the amendment and technical correction as a final rule.