Categorized | Business

Consumer agency publishes new rule on remittances

MEDIA RELEASE

The Consumer Financial Protection Bureau has published its first major final rule that implements section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The new final rule will create a comprehensive new system of consumer protections for remittance transfers sent by consumers in the United States to foreign countries.

U.S. Sen. Daniel K. Akaka, the author of section 1073 and a longtime champion of consumer protections, released the following statement:

“Hardworking Americans frequently send substantial portions of their earnings to family members living overseas. Many people in Hawaii remit money to help support their spouses, children, parents, and cousins living in nations across the Pacific. Unfortunately, they sometimes encounter significant problems with these transactions, such as unknown fees and charges, and in a few cases the money never reaches their loved ones. Before the passage of Wall Street Reform, consumers relying on remittances had few protections and fewer options for recourse.

“Now, simple disclosures will empower consumers with important information, including the amount of currency that the recipient will receive, the promised date of delivery, and the rights of the sender regarding the resolution of errors. This is the information that consumers need to know so they can properly compare the rates and fees deducted from their remittances. I thank the Bureau for its work to implement these needed consumer protection reforms and for its commitment to work with consumer groups, industry, and other regulators to follow up on the impact of these new regulations.”

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