The Bureau of Consumer Financial Protection (“CFPB”) today published its final rule amending Regulation E, which implements the Electronic Fund Transfer Act, and the official interpretation to the regulation, which interprets the requirements of Regulation E. The final rule provides new protections, including disclosures and error resolution and cancellation rights, to consumers who send remittance transfers to other consumers or businesses in a foreign country. The amendments implement statutory requirements set forth in the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Association will be preparing an InCompliance package for the final rule which takes effect February 7, 2013. You can find the 116 page final rule here.
The CFPB also published today a proposed rule related to the remittance transfer final rule. The proposal requests comment on whether a safe harbor should be adopted with respect to the phrase ‘‘normal course of business’’ in the definition of ‘‘remittance transfer provider.’’ This definition determines whether a person is covered by the rule. The proposal also requests comment on several aspects of the final rule regarding remittance transfers that are scheduled in advance, including preauthorized remittance transfers. In developing the final rule, the CFPB believes that these issues would benefit from further public comment. Comments on the proposal must be received by April 9th. The 25 page proposed rule is available here.