The Consumer Financial Protection Bureau (CFPB) recently proposed a rule that would expand its authority to assess the largest banks' and credit unions' compliance with the Remittance Rule to include "any nonbank international money transfer provider that provides more than one million international money transfers annually" (See our Jan 22, 2012, blog post – "CFPB sets new rules for international money transfers") International money transfers were generally not covered by federal consumer protection regulations before the Dodd-Frank Act, which created the agency. The proposed rule "would bring new oversight to about 25 of the largest providers in the market," enabling the bureau to ensure that these nonbanks offer the following consumer protections:
- Better disclosures regarding exchange rates, fees, the amount of money that will be delivered abroad, and the date the money will be available.
- The ability to cancel a remittance within 30 minutes of payment "regardless of the reason the consumer wants to cancel."
- Holding remittance transfer providers accountable for certain types of errors and requiring that they investigate and correct certain errors should a remittance sender report a problem within 180 days. "Companies that provide remittance transfers may also be responsible for mistakes made by their agents."