Consumer Finance Protection Board Expands Database

In the first week of April, 2013, the Consumer Finance Protection Board expanded the Consumer Complaint Database to include money transfer complaints. The public records database, set up in 2011, had previously only accepted complaints related to credit cards, mortgages, student loans and bank accounts.Now people can submit complaints about money transfer issues; when funds are not available as promised, when the wrong amount was charged or received, and when money transfer companies use incorrect or missing information or improper disclosures are all examples of complaints—frauds, scams and other transaction and service issues are also standard problems.Currently, the CFPB is working on fixing Regulation E, which implements the Electronic Fund Transfer Act (EFTA). This rule will offer consumer protections, including disclosures and error resolution, as well as cancellation rights, to people sending remittance transfers to third parties in foreign countries. The rule will finally require money transfer companies to disclose the exchange rate and any fees associated with the transfer, so people are informed of exactly how much money will be received overseas. And, remittance providers will be required to look into disputes, fix the errors, and give people thirty minutes after sending their payment to cancel for a full refund.The U.S. is one of the top remittance-sending countries in the world, with many of the transfers sent to Latin America and Asia. The Dodd-Frank Act has finally lent EFTA enforcement powers over international money transfers.