CFPB sets new rules for international money transfers

For those who send money internationally, the CFPB issued new rules governing remittance transfers.   Among other requirements, the new disclosures will require companies providing international transfers to disclose the exchange rate, fees, and the amount of money to be delivered to the recipient in the foreign country.  Transmitting companies must also provide a receipt or proof of payment and tell the customer the date that the money will arrive to the recipient.

Companies now must investigate any reported problem with a transfer, and at times, a customer can be refunded or transfer without charge if money fails to arrive when promised.   These rules are effective January 2013.  These new rules will impact companies such as Western Union and MoneyGram who will now have to comply with the new requirements.  But the new rules likewise apply to banks, savings and loans companies and credit unions. 

Consumer Financial Protection Bureau, Dodd-Frank, Federal Regulatory