Federal Register: CFPB Proposes Extending Remittance Transfers Exemption

The CFPB proposed an extension of an exemption allowing insured institutions to disclose estimates to consumers of the exchange rate and covered third-party fee. The proposed extension was published in the Federal Register. The proposed exemption is currently set to expire on July 21, 2020. Comments on the proposal must be submitted by January 21, 2020.

As previously covered, the proposal to amend Regulation E ("Electronic Fund Transfers") would allow consumers to continue to send remittances from their bank accounts to various destinations while also lessening the burden of compliance for banks and credit unions. The CFPB stated that the estimates disclosed to consumers would be allowed when it is economically infeasible to provide exact figures.