This week, the Consumer Financial Protection Bureau (CFPB) announced its plans to move forward with new rules that will provide strong new protections to consumers who send money abroad, also known as a “remittance.”
Despite pressure from the industry to delay the rule and create big loopholes to exempt many businesses from the regulations, the CFPB confirmed that these crucial new protections will go into effect starting February 2013:
- Disclosures showing actual exchange rates, fees, and amount of money to be delivered before you make the payment;
- A receipt confirming the payment;
- The right to cancel the transaction within 30 minutes of making the payment;
- The right to dispute errors and get your money back if the money doesn’t arrive as promised.
The rules apply to most companies that offer remittance transfers, including banks, credit unions, and money transmitters.
For tips on how to find the best deal when send money abroad, read this recent article from Consumer Reports.