Last week, the Consumer Financial Protection Bureau released its final rule on international money transfers. The rule turned out to be less strict than banks had feared thanks to two consumer groups, the Center for Responsible Lending and the National Council of La Raza. The groups successfully convinced the regulatory body that a stricter rule would drive small banks and credit unions out of the $543 billion remittance business.

Ballard Spahr partner Jeremy T. Rosenblum said it seemed as if the CFPB had “seen the light.” He noted that industry groups and consumer advocates agreed that the rule was too strict and was going to force a lot of remittance providers out of the market.

The final remittance rule will still provide increased consumer protections required under the Dodd-Frank Act. Lenders say it shows that the CFPB will listen to industry concerns, despite the perception that it is anti-bank.

Related Practices

Consumer Financial Services
Mortgage Banking