Alert August 21, 2012

Congress Members Request CFPB to Push Back Remittance Effective Date

Twenty-seven members of Congress sent a letter to Director Richard Cordray, urging the CFPB to delay the February 2013 effective date of its international remittance transfer rules (Regulation E) by two years. The Congress members also urged the CFPB to undertake a comprehensive study on the impact the rules will have. The Congress members are concerned that the rules’ disclosure requirements will require financial institutions to switch to a closed network model, exit the international funds transfer business, or limit their consumer offerings. The Congress members are also concerned that the rules will increase the risk on providers, which will result in increased prices being paid by consumers.