(3) Prominence and size. Fees disclosed in the currency in which the funds will be received. Disclosures may contain commonly accepted or readily understandable abbreviations or symbols, such as USD to indicate currency in U.S. dollars or MXN to indicate currency in Mexican pesos. Abbreviations and symbols. For example, if funds may be available on January 3, but are not certain to be available until January 10, then a provider complies with 1005.31(b)(2)(ii) if it discloses January 10 as the date funds will be available. CFPB-2019-0058] RIN 3170-AA96 Remittance Transfers under the Electronic Fund Transfer Act (Regulation E) AGENCY: Bureau of Consumer Financial Protection. Disclosures provided orally for transactions conducted orally and entirely by telephone under paragraph (a)(3) of this section or orally or via mobile application or text message for transactions conducted via mobile application or text message under paragraph (a)(5) of this section shall be made in the language primarily used by the sender with the remittance transfer provider to conduct the transaction. A provider may provide a statement that funds may be available to the designated recipient earlier than the date disclosed, using the term may be available sooner or a substantially similar term; (iii) The name and, if provided by the sender, the telephone number and/or address of the designated recipient, using the term Recipient or a substantially similar term; (iv) A statement about the rights of the sender regarding the resolution of errors and cancellation, using language set forth in Model Form A-37 of Appendix A to this part or substantially similar language. and the Rule, the term "remittance transfer provider" is defined, in part, to mean any person that For any remittance transfer scheduled by the sender at least three business days before the date of the transfer, the statement about the rights of the sender regarding cancellation must instead reflect the requirements of 1005.36(c); (v) The name, telephone number(s), and Web site of the remittance transfer provider; (vi) A statement that the sender can contact the State agency that licenses or charters the remittance transfer provider with respect to the remittance transfer and the Consumer Financial Protection Bureau for questions or complaints about the remittance transfer provider, using language set forth in Model Form A-37 of Appendix A to this part or substantially similar language. Similarly, a Web site need not be disclosed if the provider does not maintain a Web site. If a sender electronically requests the provider to send a remittance transfer, the disclosures required by 1005.31(b)(2) may be provided to the sender in electronic form, subject to compliance with the consumer consent and other applicable provisions of the E-Sign Act. Section 1005.33 (g) (1) of the Remittance Transfer Rule requires remittance-transfer providers to develop and maintain written policies and procedures that are designed to ensure compliance with the error-resolution requirements under the rule. Disclosures provided orally under paragraph (a)(4) of this section for error resolution purposes shall be made in the language primarily used by the sender with the remittance transfer provider to assert the error. CFPB Final Rule on Remittance Transfers under the Electronic Fund Transfer Act . 3. The following example demonstrates how the information required by 1005.31(b)(2)(vii) and 1005.36(d)(1) should be disclosed on receipts: On July 1, a sender instructs the provider to send a preauthorized remittance transfer of US$100 each week to a designated recipient. The term used to describe the fees imposed on the remittance transfer by the provider in 1005.31(b)(1)(ii) and the term used to describe covered third-party fees under 1005.31(b)(1)(vi) must differentiate between such fees. 7. For more information, visit www.consumerfinance.gov. For example, if a sender conducts a transfer entirely by telephone via mobile application, a remittance transfer provider may mail or deliver the disclosures to a sender pursuant to the timing requirements in 1005.31(e)(2). Alternatively, for disclosures required by 1005.31(b)(1)(i) through (vii), a provider may disclose a term and state that an amount or item is not applicable, N/A, or None. For example, if fees or taxes are not imposed in connection with a particular transaction, the provider need not provide the disclosures about fees and taxes generally required by 1005.31(b)(1)(ii), the disclosures about covered third-party fees generally required by 1005.31(b)(1)(vi), or the disclaimers about non-covered third-party fees and taxes collected by a person other than the provider generally required by 1005.31(b)(1)(viii). A remittance transfer provider must disclose to a sender, as applicable: i. 1026.39 Mortgage transfer disclosures. Section 1005.31(a)(5) applies only to transactions conducted entirely by mobile telephone via mobile application or text message. Disclosures provided via mobile application or text message, to the extent permitted by 1005.31(a)(5), need not be retainable. Typically, the remittance transfer is funded in U.S. dollars, so the transfer amount would be expressed in U.S. dollars. (4) Long form error resolution and cancellation notice. If a provider does not know the exact date on which funds will be available, the provider may disclose the latest date on which the funds will be available. An advertisement, solicitation, or marketing that is considered to be made at an office does not include general advertisements, solicitations, or marketing that are not intended to be made at a particular office. 2 This Regulatory Alert refers to the first final rule and subsequent amendments collectively as the "Rule." On August 22, 2014, CFPB issued a final rule to amend the Rule. (2) Written and electronic disclosures. Generally, whether a foreign language is considered to be principally used by the remittance transfer provider to advertise, solicit, or market is based on: A. A sender that has sent an email, fax, mailed letter, or similar written or electronic communication has not requested a remittance transfer if the provider believes that it is impractical for the provider to treat that communication as a request and if the provider treats the communication as an inquiry and subsequently responds to that inquiry by calling the consumer on a telephone and orally gathering or confirming the information needed to process a request for a remittance transfer. We will update you on newsroom updates. 1005.36 Transfers scheduled before the date of transfer. For example, disclosures may be provided on a register receipt or on an 8.5 inch by 11 inch sheet of paper. See interpretation of 31(b)(3) Combined Disclosure in Supplement I. However, if any of the disclosures required by 1005.31(b) or permitted by 1005.31(b)(1)(viii) are not accurate when a sender makes payment for the remittance transfer, a provider must give new disclosures before accepting payment. If the provider discloses on either receipt the cancellation period applicable to and dates of subsequent preauthorized remittance transfers in accordance with 1005.36(d)(2), the disclosure must be phrased and formatted in such a way that it is clear to the sender which cancellation period is applicable to any date of transfer on the receipt. , a remittance transfer provider shall comply with the requirements of this section with respect to any oral or written request to cancel a remittance transfer from the sender that is received by the provider no later than 30 minutes after the sender makes payment in connection . The CFPB's first remittance transfer consent order in August 2019 was issued after six years of no enforcement related to the Remittance Rule. ii. Under 1005.31(g)(1), a remittance transfer provider may, but need not, provide the sender with a written or electronic disclosure that is in English and, if applicable, in each foreign language that the remittance transfer provider principally uses to advertise, solicit, or market either orally, in writing, or electronically, at the office in which a sender conducts a transaction or asserts an error, respectively. First, the Bureau proposes to increase the Rule's safe harbor threshold, mitigating . See Model Form A-30(c). Among its requirements, the rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of . The final rule will further provide regulatory certainty that will continue to enable consumers to send money to their family and friends overseas during the pandemic and beyond. (1) Except as provided in 1005.36(a), a pre-payment disclosure required by paragraph (b)(1) of this section or a combined disclosure required by paragraph (b)(3) of this section must be provided to the sender when the sender requests the remittance transfer, but prior to payment for the transfer. Transactions conducted partially by telephone. At the office. For example, if no transfer taxes are imposed on a remittance transfer, a provider would only disclose applicable transfer fees. The foreign language used in such an advertisement is not considered to be principally used at that office based on the incidental specific foreign language term used. If a sender electronically requests the remittance transfer provider to send a remittance transfer, the disclosures required by 1005.31(b)(1) may be provided to the sender in electronic form without regard to the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. (ii) The foreign language primarily used by the sender with the remittance transfer provider to conduct the transaction (or for written or electronic disclosures made pursuant to 1005.33, in the foreign language primarily used by the sender with the remittance transfer provider to assert the error), provided that such foreign language is principally used by the remittance transfer provider to advertise, solicit, or market remittance transfer services, either orally, in writing, or electronically, at the office in which a sender conducts a transaction or asserts an error, respectively. Primarily used. For example, a provider may know that the designated recipient's institution imposes an incoming wire fee for receiving a transfer. iii. Disclosures required by paragraph (b) of this section or permitted by paragraph (b)(1)(viii) of this section that are provided in writing or electronically must be in equal prominence to each other. Conversely, a sender who asks the provider at an agent location to send money to a recipient in Mexico and provides the sender and recipient information to the provider has requested a remittance transfer. Request to send a remittance transfer. The disclosures may be set off from other information on a notice by outlining them in a box or series of boxes, with bold print dividing lines or a different color background, or by using other means. A sender initiates a conversation with the remittance transfer provider with a greeting in English and states in English that there was a problem with a prior remittance transfer to Vietnam. Communicating in a foreign language (whether by telephone, electronically, or otherwise) about remittance transfer services in response to a consumer-initiated inquiry. 5. The Remittance Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers. 3. 1005.34 Procedures for cancellation and refund of remittance transfers. For example, if an advertisement for remittance transfers in Chinese appears in a Chinese newspaper that is being distributed at a grocery store in which the agent of a remittance transfer provider is located, such advertisement would not be considered to be made at that office. Segregation. A "remittance transfer" means the electronic transfer of funds requested by a sender to a designated recipient that is sent by a remittance transfer provider. The Remittance Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers. 1. 1005.9 Receipts at electronic terminals; periodic statements. The information required by paragraph (b)(2)(iv) of this section generally must be disclosed in close proximity to the other information required by paragraph (b)(2) of this section. (1) General definition. The amount received must reflect the exchange rate, all fees imposed and all taxes collected on the remittance transfer by the remittance transfer provider, as well as any covered third-party fees required to be disclosed by 1005.31(b)(1)(vi). A remittance transfer provider must only disclose information about one State agency that licenses or charters the remittance transfer provider with respect to the remittance transfer, even if other State agencies also regulate the remittance transfer provider. Office. The Consumer Financial Protection Bureau's (" CFPB ") Remittance Transfer Rule, also known as Regulation E, became effective on October 28, 2013. 2. As of Sept 2014, the CFPB Remittance rule, the companies must provide more protection to the consumers for international remittance. Section 1005.32(b)(3) additionally permits a provider to disclose an estimate of such fees and taxes, provided any estimates are based on reasonable source of information. 1. The information required by paragraph (b)(1) of this section may be disclosed orally or via mobile application or text message if: 1. Appendix A to Part 1005 Model Disclosure Clauses and Forms, Appendix C to Part 1005 Issuance of Official Interpretations, Comment for 1005.4 General Disclosure Requirements; Jointly Offered Services, Comment for 1005.5 Issuance of Access Devices, Comment for 1005.6 Liability of Consumer for Unauthorized Transfers, Comment for 1005.8 Change-in-Terms Notice; Error Resolution Notice, Comment for 1005.9 Receipts at Electronic Terminals; Periodic Statements, Comment for 1005.10 Preauthorized Transfers, Comment for 1005.11 Procedures for Resolving Errors, Comment for 1005.12 Relation to Other Laws, Comment for 1005.13 Administrative Enforcement; Record Retention, Comment for 1005.14 Electronic Fund Transfer Service Provider Not Holding Consumer's Account, Comment for 1005.15 Electronic Fund Transfer of Government Benefits, Comment for 1005.17 Requirements for Overdraft Services, Comment for 1005.18 Requirements for Financial Institutions Offering Prepaid Accounts, Comment for 1005.19 Internet Posting of Prepaid Account Agreements, Comment for 1005.20 Requirements for Gift Cards and Gift Certificates, Comment for 1005.30 - Remittance Transfer Definitions, Comment for 1005.33 - Procedures for Resolving Errors, Comment for 1005.34 - Procedures for Cancellation and Refund of Remittance Transfers, Comment for 1005.36 - Transfers Scheduled Before the Date of Transfer, Comment for Appendix A - Model Disclosure Clauses and Forms. Once the CFPB determines which consumer payment companies will come under its direct supervision, agency examiners will be able to closely monitor them for compliance with Reg E, the operating rules for the Electronic Fund Transfer Act, as well as for unfair, deceptive, and abusive acts and practices (UDAAP) that potentially harm consumers. i. Estimated disclosures must be described using the term Estimated or a substantially similar term in close proximity to the estimated term or terms. See interpretation of 31(a)(3) Disclosures for Oral Telephone Transactions in Supplement I. 1005.16 Disclosures at automated teller machines. For example, a provider must disclose any service fee, any fees imposed by an agent of the provider at the time of the transfer, and any State taxes collected on the remittance transfer at the time of the transfer. (2) Oral, mobile application, or text message disclosures. If the sender primarily uses English with the remittance transfer provider to conduct the transaction or assert an error, the remittance transfer provider may provide a written or electronic disclosure solely in English. See interpretation of 31(a)(1) Clear and Conspicuous in Supplement I. ii. An office includes any physical location, telephone number, or Web site of a remittance transfer provider where a sender may conduct a remittance transfer or assert an error for a remittance transfer. See 1005.4(a)(1). Cancellation disclosure. First, under 1005.31(b)(1)(i), a provider must disclose the transfer amount in the currency in which the remittance transfer is funded to show the calculation of the total amount of the transaction. A remittance transfer provider does not comply with the requirements of 1005.31(b)(2)(ii) if it provides a range of dates that the remittance transfer may be available or an estimate of the date on which funds will be available. When payment is made. The information required by paragraphs (b)(1)(i), (ii), and (iii) of this section generally must be grouped together. A remittance transfer provider is not required to guarantee the terms of the remittance transfer in the disclosures required or permitted by 1005.31(b) for any specific period of time. The sender requests that first transfer in the series be sent on July 15. The statement about the rights of the sender regarding cancellation required by 1005.31(b)(2)(iv) may, but need not, be disclosed pursuant to the timing requirements of 1005.31(e)(2) if a provider discloses this information pursuant to 1005.31(a)(3)(iii) or (a)(5)(iii). For example, if a financial institution is solely regulated by a Federal agency, and not licensed or chartered by a State agency, then the institution need not disclose information about a State agency. See comment 31(b)(1)(vi)-1. The sender's name and contact information; iii. Last month, the Bureau also announced regulatory flexibility as a result of the impact the pandemic is having on consumers finances, both here and around the world. 1 CFPB subsequently amended the regulations implementing the remittance transfer rules. Regulations and official interpretations Browse the Remittance Rule (Subpart B of Regulation E, 12 CFR 1005) on: Interactive Bureau Regulations | eCFR x. Number of foreign languages used in written disclosure. (viii) A statement indicating that non-covered third-party fees or taxes collected on the remittance transfer by a person other than the provider may apply to the remittance transfer and result in the designated recipient receiving less than the amount disclosed pursuant to paragraph (b)(1)(vii) of this section. B. ii. A State-chartered bank must disclose information about the State agency that granted its charter, regardless of the location of the sender. However, where a transfer (whether a one-time remittance transfer or the first in a series of preauthorized remittance transfers) is scheduled before the date of transfer and the provider does not intend to process payment until at or near the date of transfer, the provider may provide a confirmation of scheduling in lieu of the proof of payment required by 1005.31(b)(3)(i). Increases the Remittance Transfer Rule's normal course of business safe harbor threshold from 100 remittance transfers to 500 remittance transfers annually; and Creates two new tailored permanent exceptions that permit insured institutions to disclose estimates of certain fees and exchange rates if certain conditions are met . More details on the rule are available at our regulations page.1 BACKGROUND 1005.13 Administrative enforcement; record retention. If the remittance transfer provider thereafter communicates with the sender in Vietnamese and the sender uses Vietnamese to convey the information required by 1005.33(b) to assert an error, then Vietnamese is the language primarily used by the sender with the remittance transfer provider to assert the error. 5. (1) Grouping. See comment 32(b)(3)-1. Alternatively, the remittance transfer provider may provide the disclosure solely in English and, if applicable, the foreign language primarily used by the sender with the remittance transfer provider to conduct the transaction or assert an error, provided such language is principally used by the remittance transfer provider to advertise, solicit, or market either orally, in writing, or electronically, at the office in which the sender conducts the transaction or asserts the error, respectively. 1005.30 to 1005.36, and the Consumer Financial Protection Act. (i) In general. The Consumer Financial Protection Bureau (CFPB) and New York Attorney General Letitia James have announced that they are suing MoneyGram International, Inc. and MoneyGram Payment Systems, Inc.. Date of transfer on receipt. 1005.4 General disclosure requirements; jointly offered services. See comment 31(b)-1. Because many consumers rely on remittance transfer providers to send money from the United States to their families and friends abroad, the Bureau took action to minimize the impact of the pandemic on the remittances market by enabling insured institutions to continue to focus on the immediate needs of their customers. Web site of the Consumer Financial Protection Bureau. 4. The final rule allows certain banks and credit unions to continue to provide estimates of the exchange rate and certain fees under certain conditions. the remittance transfer is sent from the sender's credit union account . 3. (f) Accurate when payment is made. A remittance transfer provider may satisfy the requirement to provide electronic disclosures in a retainable form if it provides an online disclosure in a format that is capable of being printed. A remittance transfer provider may provide estimates of the amounts required by 1005.31(b), to the extent permitted by 1005.32. Remittance Transfers under the Electronic Fund Transfer Act (Regulation E) AGENCY: Bureau of Consumer Financial Protection. The exchange rate used to calculate this amount is the exchange rate in paragraph (b)(1)(iv) of this section, including an estimated exchange rate to the extent permitted by 1005.32, prior to any rounding of the exchange rate. 1005.19 Internet posting of prepaid account agreements. A provider need only disclose fees imposed or taxes collected on the remittance transfer by the provider in 1005.31(b)(1)(ii), as applicable. If a sender does not know the currency in which funds will be received, the provider may assume that the currency in which funds will be received is the currency in which the remittance transfer is funded. The following examples illustrate this concept. . Explore guides to help you plan for big financial goals, Subpart B - Requirements for Remittance Transfers 1005.301005.36, Supplement I to Part 1005 - Official Interpretations, Official interpretation of 31(a) General Form of Disclosures, Official interpretation of 31(a)(1) Clear and Conspicuous, Official interpretation of 31(a)(2) Written and Electronic Disclosures, Official interpretation of 31(a)(3) Disclosures for Oral Telephone Transactions, Official interpretation of 31(a)(5) Disclosures for Mobile Application or Text Message Transactions, Official interpretation of 31(b) Disclosure Requirements, Official interpretation of 31(b)(1) Pre-Payment Disclosures, Official interpretation of 31(b)(1)(iv) Exchange Rate, Official interpretation of 31(b)(1)(vi) Disclosure of Covered Third-Party Fees, Official interpretation of 31(b)(1)(vii) Amount Received, Official interpretation of 31(b)(1)(viii) Statement When Additional Fees and Taxes May Apply, Official interpretation of 31(b)(2) Receipt, Official interpretation of 31(b)(3) Combined Disclosure, Official interpretation of 31(c) Specific Format Requirements, Official interpretation of 31(c)(1) Grouping, Official interpretation of 31(c)(4) Segregation, Official interpretation of 31(d) Estimates, Official interpretation of 31(f) Accurate When Payment Is Made, Official interpretation of 31(g) Foreign Language Disclosures, Official interpretation of 31(g)(1) General.
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