CFPB: Remittance Rule Effective Date Delayed Until Spring 2013
The CFPB on Tuesday announced it will extend the effective date of its remittance rule until 90 days after the bureau finalizes the proposal.
In a bulletin, the CFPB said it expects the proposed effective date will be “sometime during the Spring of 2013,” rather than the original Feb. 7, 2013 effective date.
CUNA President/CEO Bill Cheney said the delay of the effective date was requested by CUNA through its comment letter, meetings and phone conferences with the CFPB. Cheney said while he is grateful for the action, he remains concerned that the CFPB did not address concerns about the exemption level, which is currently set at 100 transactions per year.
NAFCU President/CEO Fred Becker said in response to the news that when he spoke with CFPB Director Richard Cordray this fall, the director “noted particular interest in the extent to which the rule would cause credit unions to cease offering international remittances.”
The CFPB also said the proposal to extend the effective date will be released next month, and is also expected to roll back the requirements for disclosing foreign taxes and third-party fees, and reducing liability for financial institutions when a sender makes an error. The proposal will have a comment period, after which the CFPB will “issue a final rule as quickly as possible” and provide an effective date 90 days thereafter.
The CFPB’s bulletin with specific information regarding the proposals is available on the bureau’s website.