The Consumer Financial Protection Bureau (CFPB) will publish in 2018 its five-year assessment of its remittance rule, part of Regulation E and the Electronic Funds Transfer Act (EFTA) that governs transfers from within the United States to outside the country. Currently, the remittance rule aims to protect consumers by requiring accurate disclosures (including pricing information prior to payment), granting post-payment cancellation rights, and mandating investigation of disputes and remediation for certain errors.
The assessment plan will review activities of providers and consumers to assess (i) whether the market for remittances has evolved in ways that promote access, efficiency, and limited market disruption and (ii) whether the new system of consumer protections has brought more information, transparency, and greater predictability of prices to the market.
In preparation for that assessment, it requests industry feedback on the rule in six key areas:
(1) Comments on the feasibility and effectiveness of the assessment plan, the objectives of the remittance rule, and the outcomes, metrics, baselines and analytical methods for assessing the rule’s effectiveness;
(2) Data and other factual information that may be useful for executing the assessment plan;
(3) Recommendations to improve the assessment plan, as well as data that would be useful and available to execute any recommended improvements;
(4) Data about the benefits and costs of the remittance rule to various parties and data about the impacts of the rule on transparency, efficiency, access, and innovation in the remittance market;
(5) Data about the rule’s effectiveness in meeting the purposes and objectives of Section 1021 the Dodd-Frank Act;
(6) Recommendations for modifying, expanding, or eliminating the remittance rule.
Comments on the remittance rule are due May 23.
View the full RFI and assessment plan here.