Summary: Request for Information Regarding Remittance Rule Assessment Plan
CFPB 12 CFR Part 1005
Notice of Assessment of Remittance Rule and Request for Public Comment
Prepared by the NASCUS Legislative & Regulatory Affairs Department
The Consumer Financial Protection Bureau (CFPB) is conducting an assessment of certain CFPB regulations related to consumer remittance transfers under the Electronic Fund Transfer Act (EFTA) in accordance with Section 1022(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires the Bureau to conduct an assessment of each significant rule or order the Bureau adopts. The Bureau issued a “Request for Information” (RFI) requesting comment on its plans for assessing the remittance regulations. Comments must be received by May 23, 2017. You can find the “Notice of Assessment of Remittance Rule and Request for Public Comment” here.
Section 1073 of Dodd Frank amended the EFTA to create a comprehensive new system of consumer protections for remittance transfers sent by consumers in the United States to individuals and businesses in foreign countries. The remittance rule applies to remittance transfers sent by traditional financial institutions (including credit unions) and non-banks such as money transmitters and Internet/mobile providers. The rule applies to consumer to consumer transfers and consumer to business transfers. The rule addresses three major areas: disclosures, cancellations/refunds and error resolution. You can access the Bureau’s February 2012 final rule here and the NASCUS summary of the rule here.
The rule assessment is informational in nature and the Bureau does not anticipate that it will respond in the assessment report to each comment received. In addition, the assessment report likely will not include specific proposals by the Bureau to modify any rules. However, the findings made in the assessment will help inform the Bureau’s thoughts as to whether to consider commencing a rulemaking in the future. The Bureau plans to issue an assessment report no later than October 28, 2018.
To assess the effectiveness of the Remittance rule in meeting the purposes, goals and objectives required under Dodd Frank and specified by the Bureau, the Bureau intends to focus its assessment of the rule on two areas:
- Whether the market for remittances has evolved after the Remittance Rule in ways that promote access, efficiency, and limited market disruption by considering how remittance volumes, prices and competition in the remittance market may have changed; and
- Whether the new system of consumer protections has brought more information, transparency, and greater predictability of prices to the market.
To inform the assessment, the Bureau invites the public to submit information/comments on the following:
- Comments on the feasibility and effectiveness of the assessment plan, the objectives of the Remittance Rule that the Bureau intends to emphasize in the assessment, and the outcomes, metrics, baselines and analytical methods for assessing the effectiveness of the rule as described in Part IV of the RFI;
- Data and other factual information that may be useful for executing the Bureau’s assessment plan, as described in Part IV of the RFI;
- Recommendations to improve the assessment plan, as well as data, other factual information, and sources of data that would be useful and available to execute any recommended improvements to the assessment plan including data on the exceptions and provisions discussed in Part IV of the RFI;
- Data and other factual information about the benefits and costs of the Remittance Rule for consumers, remittance transfer providers, and others; and about the impacts of the rule on transparency, efficiency, access, and innovation in the remittance market;
- Data and other factual information about the rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act (section 1021), which are listed in Part IV of the RFI; and
- Recommendations for modifying, expanding or eliminating the Remittance Rule.