In an effort to keep costs affordable for consumers, particularly those who send money home to family members in Latin American countries, CUNA & Affiliates and World Council of Credit Unions spoke out to Congress against exclusive one-way remittance contracts between financial institutions and money transfer organizations.
The two trade groups issued a paper urging the U.S. Department of Justice to review exclusivity contracts because they limit or eliminate opportunities for low-cost remittance activity. The paper was issued for a hearing by the Congressional Subcommittee on Financial Institutions and Consumer Credit, which convened this morning in Washington.
"Credit unions throughout the world are leading the way in ensuring that immigrants have access to affordable remittance and financial services," said Pete Crear, WOCCU president/CEO. "We want to work with Congress to encourage competition in the market and limit these troubling negotiation techniques employed internationally by a select group of money transfer organizations."
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Crear said congressional inquiry is both appropriate and necessary, because many of the money transfer organizations engaged in competition-limiting practices are U.S.-based.
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