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Financial Services Law Insights and Observations

CFPB says remittance provider violated EFTA

Federal Issues CFPB Enforcement Consumer Finance Remittance Rule EFTA Regulation E

Federal Issues

On December 22, the CFPB announced a consent order against an international remittance company for multiple alleged violations of the requirements governing electronic money transfers. According to the Bureau, the company allegedly failed to comply with many requirements of the Electronic Fund Transfer Act, including failing to provide refunds to customers after the company made money transfer errors. The Bureau also alleged that the company violated the Remittance Rule by failing to develop and maintain required written policies and procedures for error resolution, and claimed the company violated Regulation E by failing to retain evidence demonstrating compliance with the Remittance Rule’s error-resolution requirements. Under the terms of the consent order, the company is required to provide consumer redress of approximately $30,000 to harmed customers and pay a $700,000 civil money penalty to the Bureau. The company is also required to update disclosure and key transfer information that is provided to customers, as well as its error-resolution policies and procedures.

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