CFPB Enters Into $950,000 Consent Order With Non-Bank Remittance Transfer Provider

On October, 4, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it reached a settlement with a non-bank remittance transfer provider to resolve alleged violations of the Electronic Fund Transfer Act (EFTA), 15 U.S.C. § 1693 et seq., and its implementing Regulation E, 12 C.F.R. Part 1005, including Subpart B (known as the Remittance Rule), and of 12 U.S.C. § 5536(a)(l)(A) of the Consumer Financial Protection Act of 2010 (CFPA).

The Bureau alleged that the remittance transfer provider violated the Remittance Rule by failing to accurately disclose prepayment information to remittance senders in its written disclosures.  Such information included money transfer fees, current exchange rates, the date the recipient would receive the funds, and other key terms.  The provider also allegedly violated EFTA by failing to maintain written policies and procedures for error resolution and failing to retain evidence demonstrating compliance with EFTA’s error-resolution requirements.  Further, the provider’s point-of-sale disclosures included an improper waiver of consumer rights also in alleged violation of EFTA.

Under the consent order​, the remittance transfer provider agreed to take broad corrective action to ensure compliance with EFTA’s error-resolution process and disclosure requirements​.  The provider also agreed to pay a $950,000 civil money penalty to the CFPB. ​