CFPB Issues Circular About Deceptive Marketing Practices In Connection With Remittance Transfers

Late last month, the Consumer Financial Protection Bureau (CFPB) issued a new Consumer Financial Protection Circular (Circular) which provides guidance about when a remittance transfer provider may be in violation of the prohibition on unfair, deceptive or abusive acts or practices in the Consumer Financial Protection Act (CFPA) when making certain representations in their marketing about the speed and cost of sending a remittance transfer. In its press release, the CFPB noted that the Circular was part of the continued effort by the CFPB to "rein in junk fees" and "spur competition." According to CFPB Director Rohit Chopra, "consumers should not be paying junk fees on international money transfers that are advertised as free."