On December 21, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a remittance transfer provider, with locations in 15 states and the District of Columbia. Remittance transfers are transfers of money by consumers in the United States to individuals living abroad. The consent order states that the company violated the Electronic Fund Transfer Act (EFTA), 15 U.S.C. § 1693 et seq., and its implementing regulation, the Remittance Transfer Rule, 12 C.F.R. Part 1005. Specifically, the order states the company failed to honor cancellation requests and failed to refund fees and taxes when remitted funds were not made available on time. Additionally, the order also notes that the company failed to make proper disclosures, maintain appropriate error resolution policies and procedures, follow related requirements, and provide consumers with information concerning error resolution.
Under the terms of the consent order, the company must pay a civil money penalty of $750,000. The order also requires the company to develop a plan to ensure future compliance with the EFTA and all other applicable consumer financial laws.
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