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Contact:
Joseph Rendeiro
(202) 776-1566
jrendeiro@nclr.org
Washington, D.C.—Standing behind American consumers, on January 20 the Consumer Financial Protection Bureau (CFPB) announced that it will implement the Electronic Fund Transfer Act, providing enhanced protection and disclosure to consumers who send money to other countries.
The remittance market has historically been loosely regulated, presenting a number of challenges to customers—especially Latinos, who have paid a particularly high cost. In 2009, immigrants from Mexico wired approximately $22.87 billion in remittances, and spent an estimated $1.5 billion in fees and other costs in performing these transactions. With little to no oversight, consumers had virtually no protection to ensure that the remittance process was fair and transparent.
NCLR (National Council of La Raza) applauds the CFBP for taking much-needed action and implementing the new regulations on remittances, which certainly benefit Latino consumers. The new provisions require that:
- Financial institutions must provide full disclosure to consumers before accepting payment
- Disclosures must include the exchange rate, fees, and the amount of money to be delivered
- Proof of payment, along with the date the money will be received, must also be provided to the consumer
- Companies providing remittance transfers are responsible for any errors that occur
NCLR believes that the new regulations are an important step toward greater financial protection for America’s families and consumers and will work with the CFPB to push for increased accountability and transparency among financial institutions.
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