DRAFT FOR INTERNAL REVIEW ONLY | cfpb_title_goes_here_r1 Helping consumers understand remittance transfers

Federal law protects consumers who send remittance transfers. For the purposes of the law, remittance transfers include most electronic money transfers over $15 sent by consumers in the United States to recipients in other countries.

Recipients can include friends, family members, or businesses. Remittance transfers are also known as international wires, international money transfers, or just remittances.

Remittance transfer providers

Transfers that are covered

Under the federal law that protects consumers who

▪ A money transfer is covered if it is more than send remittance transfers, a remittance transfer provider is a company that transfers money electronically for consumers in the United States to

$15 sent by a consumer in the United States to someone in another country through a remittance transfer provider.

people and businesses in other countries.

Transfers that are not covered Remittance transfer providers include many money transmitters, banks and credit unions, and possibly other types of financial services companies.

▪ A money transfer sent to someone in the United States through a remittance transfer provider would not be covered because the transfer is

This federal law’s protections apply only to

not an international money transfer.

transfers that qualify as remittances and are sent by

▪ Companies that consistently send 100 or fewer remittance transfer providers.

remittance transfers a year do not qualify as remittance transfer providers and are not covered by the rule.

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DRAFT FOR INTERNAL REVIEW ONLY | cfpb_title_goes_here_r1 Federal law protects consumers who send remittance transfers

▪ If appropriate, a statement that additional foreign taxes and fees may be deducted from the remittance transfer

Consumers see costs before they pay

Consumers see information including the amount of money to be transferred, the exchange rate,

What happens at the time of payment

some fees, taxes collected by the provider, and the

Remittance transfer providers are also required amount of money expected to be delivered abroad

to provide the following information in the receipt (not including taxes or fees that may be collected

provided to consumers: on the receiving side). This information is free and consumers are under no obligation to continue with the transfer once they receive the information.

▪ Exchange rate, fee and tax information that matches the amounts the remittance provider gave on the pre-payment disclosure

Consumers have protections if

▪ When the money will be available to the recipient something goes wrong

▪ The sender’s right to cancel the transfer

If a consumer thinks an error was made with a

▪ What to do in case of an error remittance transfer and tells the company within 180 days, the company generally has 90 days to

▪ How to submit a complaint

investigate the matter. The company must notify

Remittance transfer providers also generally have the consumer of the investigation’s results. If an

the option to provide all of the required information error occurred, the consumer may be able to get a

in a single disclosure before payment is made. If refund or have the transfer sent again.

the actual transfer information is different and the pre-payment disclosure is inaccurate, the consumer

What happens before payment

must receive a corrected disclosure.

Consumers generally have up to 30 minutes to For most transfers, information must be given in

cancel their transfers at no charge, as long as the writing before the consumer pays for the transfer.

money has not been picked up by the recipient or For most transfers, the amounts disclosed must be

has not been deposited into the recipient’s account. exact, but in some cases they can be estimates. The

If a remittance transfer is scheduled more than information includes:

three business days in advance, it can be canceled

▪ The exchange rate

if the provider receives the cancellation request up to three business days before the scheduled date of

▪ Fees and taxes collected by the company

the transfer.

▪ Other fees involved in the transfer process

▪ The amount of money expected to be delivered, not including foreign taxes or certain fees charged to the recipient

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DRAFT FOR INTERNAL REVIEW ONLY | cfpb_title_goes_here_r1 If something goes wrong with a

About the CFPB remittance transfer

The Consumer Financial Protection Bureau

▪ Consumers have up to 180 days to dispute an

is an independent federal agency built to error with the remittance transfer provider.

protect consumers. We write and enforce

▪ The company then has 90 days to investigate the matter and must tell the consumer the results of the investigation. If an error occurred,

rules that keep banks and other financial companies operating fairly. We also educate and empower consumers, helping them the consumer may be able to get a refund or

make more informed choices to achieve have the money sent again.

their financial goals.

This is not an exhaustive list of the protections

Learn more at consumerfinance.gov provided by federal law. Other protections may also be available to consumers, depending on the laws in their states.

Connect with us

 Submit a complaint

consumerfinance.gov/complaint

 Tell your story

consumerfinance.gov/your-story

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