The Independent Community Bankers of America recently expressed support for revisions to the CFPB’s remittance transfer rule designed to help smaller money transfer providers continue to offer the services.
“ICBA is glad the CFPB addressed the community banking industry’s concerns with this latest rule on remittance transfers,” ICBA President and CEO Camden R. Fine said. “As previously written, the CFPB’s rule would have posed unnecessary compliance challenges to Main Street institutions. The revisions reflect the operational realities of community banks and will help ensure that their customers continue to have access to remittance services.”
Under the proposed changes to the final rule, the CFPB made optional a requirement mandating that providers disclose the fees or taxes imposed by a receiving institution.
When funds are deposited into the wrong account, regardless of consumer fault, the provider would be required to recover the funds but would not bear the cost of funds that cannot be recovered. Additionally, the CFPB extended the 90-day compliance period to 180 days.
In a February comment letter, the ICBA urged the agency to replace the required fee disclosure with a statement that says fees and taxes at the receiving institution “may apply,” the revision of the error-resolution standard and liability provisions to ensure the customer is responsible for the accuracy of all provided information and to extend the implementation period.