ABA, Groups to CFPB: Continue Allowing for Estimates in Remittance Disclosures

The American Bankers Association, its transaction banking subsidiary BAFT and other industry trade associations today urged the Consumer Financial Protection Bureau to continue permitting depository institutions to provide estimates of pricing information in remittance transfer disclosures where the exact amounts cannot reasonably be determined. This temporary exception from the Regulation E requirement to disclose pricing information to remittance customers expires on July 21, 2020.

The associations explained that it is not always possible for insured institutions that conduct their remittance transfer business through open networks — where no one institution has end-to-end control over a cross-border transaction — to obtain exact pricing information.

“Absent action taken by the [CFPB] to maintain the ability to estimate, the associations are concerned that the existing market for bank-provided remittance transfers will be significantly disrupted and that many consumers will lose the ability that they enjoy today to make remittance transfers safely, reliably and conveniently through their insured institutions directly from their deposit accounts,” the associations wrote. For more information, contact ABA’s Jonathan Thessin.