Published: November 2024

Advocates urge CFPB to require transparency for remittance fee disclosures

In a letter to the CFPB, advocates asked the Bureau to amend the Remittance Rule, which governs fees, disclosures, etc. on international remittances, so that the total cost of a remittance is transparent.

Dozens of advocates signed on to a letter to the Consumer Financial Protection Bureau (CFPB) asking the Bureau to amend the Remittance Rule, which governs disclosures and procedures for international remittances, to ensure that the total cost of a remittance is transparent. Remittance costs have been rising, and these increases are contributing to the financial stresses of working-class consumers—frequently immigrants—who regularly send money to family members abroad. The letter urged the CFPB to require two key numbers to be prominently disclosed by remittance providers: 1) the total cost of the remittance in a single, upfront amount (the amount of money to be sent, plus all fees charged by all providers participating in the transaction, including fees charged by the recipient’s institution, all taxes charged on both ends for the transaction, any exchange rate margins, and any other hidden costs or fees); and 2) the total amount to be received by the recipient (the exact amount to be delivered to the recipient in the foreign currency after all fees and taxes have been deducted, as well as considering the actual exchange rate that the provider will use for the transaction). Further, the CFPB should eliminate the exception for non-covered third-party fees (the fees charged by the recipients’ providers) and reverse the expanded safe harbors that allow many financial institutions to avoid compliance. These changes would allow consumers to comparison shop more effectively, encourage a more competitive market among remittance providers, and lower costs across the market for low-income immigrants trying to help their families back home.

Lead Organization

National Consumer Law Center

More Information

Read the letter here.

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