Senator Warren Applauds New CFPB Protections for Consumers Sending Money Abroad
Washington, DC – United States Senator Elizabeth Warren today applauded the Consumer Financial Protection Bureau (CFPB) for a new rule the agency issued to protect American consumers making electronic money transfers to foreign individuals and companies, known as “remittance transfers.” Until the CFPB was tasked with issuing rules around transfers abroad, there were no protections for remittances. These rules, which go into effect today, will give consumers new confidence that the money they send is the amount that will be received.
“People sending money to loved ones abroad shouldn't get surprised by hidden fees and frustrated by errors that don't get fixed,” said Senator Warren. “The CFPB’s new rules help consumers see prices and risks upfront so they can shop for the best deal, and remittance providers will be held accountable for investigating and addressing errors when they occur. I applaud the CFPB for the steps they’re taking to make transfers reliable and secure, and protect consumers from financial fraud.”
The new rules apply to remittance transfers that are over $15, made by an American consumer and sent to a person or company in a foreign country. The rules include a cancellation window following a transfer, requirements for companies to investigate reported problems and grant refunds if agreements are not met, and requirements for companies to take responsibility for mismanaged transfers by their employees. Consumers sending remittance transfers are also entitled to receive disclosures regarding cost and delivery, including the final exchange rates, fees, and amount of money in the recipient’s local currency.
As Assistant to the President and Special Advisor to the Secretary of the Treasury for the CFPB, Warren prioritized efforts to tackle fraud in remittance transfers and oversaw early work behind these new protections.
For a fact sheet on the final remittance transfer rule, visit the CFPB’s website.