Regulation

CFPB to launch consumer educational campaign on remittance protections

cfpbThe CFPB said on Monday its plans to launch a nationwide multimedia campaign to provide consumers who send international money transfers with information about new protections under a rule finalized earlier this year.

“Knowing how the new rules protect consumers is critical for those who send money abroad,” CFPB Director Richard Cordray said. “Through clear, upfront information in several languages, this campaign will help educate and empower those consumers who send international money transfers.”

International money transfers were generally not covered by federal consumer protections before the passage of the 2010 Dodd-Frank Act. The legislation, however, expanded the scope of the Electronic Fund Transfer Act to provide additional protections to consumers who send remittance transfers. The rule took effect on Monday.

Consumers who make international money transfers will receive free information upfront regarding the exchange rate, fees and taxes; information on the amount of money to be received; the right to cancel most transfers within 30 minutes at no additional cost; and 180 days to report errors to the company, the right to an investigation and remediation for certain types of errors.

The CFPB will provide brochures, posters and other printed materials to community groups, immigrant organizations, consulates and other federal agencies. Financial services firms interested in the campaign can order or download materials in English, Spanish, Chinese, Tagalog and French-Creole.

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