CFPB Proposes Amendment to Remittance Transfer Disclosures

The CFPB proposed requiring remittance transfer providers to inform consumers that they should contact the State licensing agency or the CFPB only for unresolved problems or complaints about the transfer or the remittance transfer provider.

The CFPB said that general customer inquiries "are more appropriately directed to the remittance transfer provider in the first instance." The CFPB stated that the proposed amendments would "help ensure that senders are more clearly informed about whom it could be more efficient to contact first in each situation." The CFPB said that the amendments are intended to streamline the resolution process and reduce the number of misdirected inquiries to regulators.

According to the CFPB, the proposal to amend Regulation E ("Electronic Fund Transfers") will also update several model disclosure forms to make the remittance provider's contact information more prominent and easier for consumers to find.

Providers will have 60 days to comply with the new disclosure requirements once the rule is adopted. Comments on the proposal must be submitted by November 4, 2024.