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    The document summarizes new federal rules on remittance transfers, which are electronic money transfers sent by U.S. consumers to recipients in other countries. The rules require remittance transfer providers to disclose exchange rates, fees, taxes, and the amount to be received upfront and for free. Consumers have rights to cancel transfers within 30 minutes and dispute errors within 180 days. The rules aim to provide more transparency and protections for consumers sending money abroad.

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    PDF 6159

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    The document summarizes new federal rules on remittance transfers, which are electronic money transfers sent by U.S. consumers to recipients in other countries. The rules require remittance transfer providers to disclose exchange rates, fees, taxes, and the amount to be received upfront and for free. Consumers have rights to cancel transfers within 30 minutes and dispute errors within 180 days. The rules aim to provide more transparency and protections for consumers sending money abroad.

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    The document summarizes new federal rules on remittance transfers, which are electronic money transfers sent by U.S. consumers to recipients in other countries. The rules require remittance transfer providers to disclose exchange rates, fees, taxes, and the amount to be received upfront and for free. Consumers have rights to cancel transfers within 30 minutes and dispute errors within 180 days. The rules aim to provide more transparency and protections for consumers sending money abroad.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    74 views4 pages

    PDF 6159

    Uploaded by

    api-309082881
    The document summarizes new federal rules on remittance transfers, which are electronic money transfers sent by U.S. consumers to recipients in other countries. The rules require remittance transfer providers to disclose exchange rates, fees, taxes, and the amount to be received upfront and for free. Consumers have rights to cancel transfers within 30 minutes and dispute errors within 180 days. The rules aim to provide more transparency and protections for consumers sending money abroad.

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    © All Rights Reserved
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    of 4

    1700 G Street, N.W.

    , Washington, DC 20552

    Remittance transfer rule factsheet


    Information to help you understand and explain new rules on remittance transfers

    What is a remittance transfer?

    Many people use the word remittance when they refer to sending money from the United
    States to other countries. Remittance transfers are commonly known as international wires,
    international money transfers, or remittances. Federal law defines remittance transfers to
    include most electronic money transfers sent by consumers in the United States through
    remittance transfer providers to recipients in other countries. These recipients can include
    friends, family members, or businesses. Transfers also must be for more than $15.

    What is a remittance transfer provider?

    Under federal law, a remittance transfer provider is a company that, in the normal course of
    business, transfers money electronically for consumers in the United States to people and
    businesses in other countries.
    Remittance transfer providers include many money transmitters, banks and credit unions, and
    possibly other types of financial services companies.
    The federal law does not apply to companies that consistently provide 100 or fewer remittance
    transfers each year.

    Transfers covered
    The new federal laws protections only apply to transfers that qualify as remittances, and
    that are sent by remittance transfer providers. For example:

    A money transfer sent to someone in the United States through a


    remittance transfer provider would not be covered because the transfer is
    not an international money transfer.
    A remittance transfer sent through a company that consistently provides
    fewer than 100 remittance transfers per year would not be covered
    because the company is not a remittance transfer provider.
    A money transfer of more than $15 sent by a consumer to someone
    outside the United States through a remittance transfer provider is
    covered.

    Problems addressed

    In the past, consumers sending money outside the United States might have received limited
    or inconsistent information about the costs of international money transfers and how much
    money would arrive on the other end. If consumers experienced problems sending money
    outside the country, there was little federal law that protected them.
    consumerfinance.gov

    CFPB Remittance Transfer Rules - Factsheet

    What the new rule does

    The new federal law gives consumers who send remittance transfers:

    More information before they pay. Now consumers will see information about the
    exchange rate, fees, and taxes theyd be charged, and the amount that would be
    received. This information is free and consumers are under no obligation to continue
    with the transfer once they receive the information.

    Protection if something goes wrong. If a consumer thinks an error was made with
    a remittance transfer and tells the company promptly, the company will generally have
    90 days to investigate the matter. The company must notify the consumer of the
    investigations results. In some cases, the consumer may be able to get a refund or have
    the transfer sent again.

    Pre-payment disclosures

    Now consumers generally will receive


    information before they pay for money
    transfers to other countries. This
    information is free. Consumers are not
    required to complete the transfer when they
    receive this information. They can choose to
    go ahead and send the money, or use the
    information to compare costs.
    For most transfers covered by the new law,
    information must be given in writing before
    the consumer pays for the transfer. This
    includes information about:
    o
    o
    o

    The exchange rate.


    Fees and taxes collected by the
    company.
    Fees charged by the companys
    agents abroad and certain other
    institutions involved in the transfer
    process.
    The amount of money expected to be
    delivered, not including foreign taxes
    or certain fees charged to the
    recipient.
    If appropriate, a statement that
    additional foreign taxes and fees may
    be deducted from the remittance
    transfer.

    consumerfinance.gov

    CFPB Remittance Transfer Rules - Factsheet

    When the transfer is paid

    Companies may also be required to provide the following information when consumers pay for
    transfers:
    o
    o
    o
    o
    o

    Exchange rate, fee and tax information that matches the amounts the remittance
    provider gave on the pre-payment disclosure.
    When the money will be available at its destination.
    The right to cancel the transfer.
    What to do in case of an error.
    How to submit a complaint.

    Companies also generally have the option to provide all of the required information in a
    single disclosure before payment is made.
    In most cases, consumers will have up to 30 minutes (and sometimes more) to cancel their
    transfers at no charge. If a remittance transfer is scheduled in advance, it can be canceled
    up to three business days before it is made.

    If a remittance transfer goes wrong


    If something goes wrong, consumers now have up to six months to dispute an error
    with the remittance transfer provider.
    The company then has 90 days to investigate the matter and must tell the consumer the
    results of the investigation. For certain types of errors, such as if the money never arrives,
    the consumer may be able to get a refund or have the money sent again.
    Consumers can also submit a complaint to the CFPB.
    Other protections may also be available, depending on how consumers send the money and
    the laws in their states.

    For more information visit or call CFPB


    o
    o
    o

    Ask CFPB (English): consumerfinance.gov/askcfpb


    Ask CFPB (Spanish): consumerfinance.gov/es
    Answers in more than 180 languages: 855-411-CFPB (2372);
    TTY/TDD (855) 729-CFPB (2372).

    consumerfinance.gov

    CFPB Remittance Transfer Rules - Factsheet

    About the CFPB


    The Consumer Financial Protection Bureau was created by the Dodd-Frank Wall Street
    Reform and Consumer Protection Act of 2010. The Bureau is focused on making the
    consumer financial markets work for families by empowering consumers to take more
    control over their financial lives. The CFPB is working to foster a marketplace:
    o Where consumers can see prices and risks upfront and where they can easily make
    product comparisons.
    o In which no one can build a business model around unfair, deceptive, or abusive
    practices.
    o That works for American consumers, responsible providers, and the economy as a
    whole.

    consumerfinance.gov

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