CFPB Proposes Amendment To Remittance Transfer Rule

In this issue. The Consumer Financial Protection Bureau (CFPB) proposed an amendment to the remittance transfer rule under the Electronic Fund Transfer Act (EFTA); the CFPB issued guidance on improper overdraft opt-in practices; and the CFPB published its first application for open banking standard setter recognition, seeking public comment. These and other developments are discussed in more detail below.

Regulatory Developments

CFPB Proposes Amendment to Remittance Transfer Rule Relating to Disclosure

On September 20, the CFPB issued a proposed rule to amend its February 2012 rule implementing the EFTA, which requires remittance transfer providers to disclose to consumers that they can contact the CFPB, and the state agency that licenses the remittance transfer provider, with any questions or complaints. In commentary accompanying the proposed rule, the CFPB notes that this disclosure has led to consumers calling the CFPB with questions that the CFPB