ICBA called on the Consumer Financial Protection Bureau to reduce the regulatory burden of its rule on remittance transfers to avoid disadvantaging community bank customers.
ICBA Comments: In a comment letter on the CFPB’s review of information collected under Electronic Fund Transfer Act (Regulation E), ICBA called on the bureau to:
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Increase the “normal course of business” safe harbor threshold to 1,200 remittances annually and exempt small financial institutions from the rule altogether.
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Reduce the time for filing complaints from 180 days to 60 days to promote regulatory consistency.
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Eliminate the “availability date” that requires community banks to predict when they believe funds would be available in a foreign location.
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Eliminate the 30-minute cancellation requirement because most consumers value transaction speed over reversibility.
Background: Reg E requires accurate disclosure of the costs, terms, and rights relating to electronic fund transfer and remittance transfer services. The compliance burden has led many community banks to exit remittance services.
