WBK Industry News - Federal Regulatory Developments

CFPB Orders Refund, Penalty for Failure to Follow Remittance Rules

Recently, the CFPB issued an order against an international remittance company requiring it to reimburse harmed consumers, pay a $700,000 penalty, and bring its business practices into compliance with the Electronic Fund Transfer Act and Regulation E’s Remittance Rule.

According to the order, the company (i) failed to develop and maintain written policies and procedures for error resolution; (ii) failed to retain evidence demonstrating compliance with the Remittance Rule’s error-resolution requirements; (iii) issued disclosures which did not use the term “transfer amount” or a “substantially similar” term; (iv) failed to accurately disclose the date of funds availability and the sender’s cancellation rights; and (v) failed to refund fees where a sender properly submitted an error notice.