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Consumer Protection Rule Stirs Talk Among Banks of Dropping Personal Remittances
By Brian Monroe
printA consumer protection rule requiring money services businesses to disclose the fees their clients must pay has prompted dozens of banks of all sizes to consider dropping their personal remittance services. Under a final rule published in February by the Consumer Financial Protection Bureau (CFPB), financial institutions that remit money, including banks with money services business (MSB) arms, must inform clients of relevant exchange rates and fees as well as allow customers 30 minutes to cancel their transactions. The regulation also makes banks and MSBs more liable for agent error. The institutions are having to "substantially change procedures…reevaluate what they...
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