The comment deadline was extended for the proposal to amend Regulation E to extend a temporary provision that permits insured financial institutions to estimate certain pricing disclosures under the Dodd-Frank Act that would otherwise expire on July 21, 2015. The rule requires financial institutions to disclose third-party fees and the exchange rate, while the exception allows federally insured financial institutions to estimate charges when exact amounts are indeterminable for reasons beyond the financial institution’s control. The comment deadline was formerly May 27, 2014, but after the extension the comment period closed on June 6, 2014.
The proposed rule responds to the CFPB’s preliminary determination that allowing the exception to expire would negatively affect the ability of insured financial institutions to send remittance transfers. The proposal primarily affects insured financial institutions that send open network transfers, since in such transactions all participants are not always known to the provider. This makes fee and exchange rate information difficult or impossible to ascertain. Without the exemption extension, financial institutions would be unable to perform certain transfers.