On April 30, 2013 the CFPB issued the final Remittance Transfer Rule amending subpart B of Regulation E. This final rule modifies the final rules issued in February, July and August 2012. The rule:
1. Modifies the 2012 Final Rule to make optional, in certain circumstances, the requirement to disclose fees imposed by a designated recipient’s institution.
2. Makes optional the requirement to disclose taxes collected by a person other than the remittance transfer provider.
Note: In place of these two former requirements, the 2013 Final Rule requires disclaimers to be added to the rule’s disclosures indicating that the recipient may receive less than the disclosed total due to the fees and taxes for which disclosure is now optional.
3. Revises the error resolution provisions that apply when a remittance transfer is not delivered to a designated recipient because the sender provided incorrect or insufficient information, and, in particular, when a sender provides an incorrect account number or recipient institution identifier that results in the transferred funds being deposited in the wrong account.
The 2013 Final Rule will go into effect on October 28, 2013.
Click here to see the final rule.