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The Consumer Financial Protection Bureau just issued ew rules on consumers making any overseas money transfers over $15. Like its other strides to make financial product fees more transparent, the CFPB’s rules will hopefully put fees on foreign transactions under the magnifying glass.
Until now, remittance transfers haven’t been held to the same consumer protection regulations as other services.
The new rules will apply to banks, thrifts, credit unions and any money transfer service, but they’re still subject to government approval.
If approved, they won’t go into effect until January of next year, but here’s what you can expect:
Companies will have to clearly spell out what the exchange rate for the transaction is, how much you’ll pay in fees and the total amount of money set to be delivered. In return, you’ll get a receipt or proof of payment.
Also, you’ll have half an hour to cancel any transfer you schedule in return for a full refund. If you don’t cancel in time, you can still file a complaint and businesses are required to investigate any reported issues with transfers.
If it turns out that it was the companies’ error and not your own that caused the problem, it’s up to them to pay for it.
Don’t forget: The CFPB is now accepting stories from consumers on shady payday lending experiences. See our coverage here.