If you are sending money from the United States, or are receiving money while you are in the United States from India or anywhere else in the world, you must know the law.
"Ignorantia legis neminem excusat," Latin for "Ignorance of law excuses no one."
Under the Federal law, Consumer Financial Protection Bureau (CFPB) was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The two main objectives of the CFPB are:
Many households rely on remittances sent by their families and friends from the United States. The pandemic has put a strain on the lives and finances of the people. In order to ease the lives of the customers, CFPB issued a statement that will enable insured remittance service providers to continue providing the immediate needs of their customers.
The key takeaways from the announcement-
The Federal law defines remittance as the transfer of money from the United States to other countries through different channels including electronic money transfers through "remittance service providers." The transfer, however, must be for more than $15 as per the Federal Rule. The federal law does not apply to companies that consistently provide 100 or fewer remittance transfers each year.
Regulation E is the framework that establishes the rights, liabilities, and responsibilities of participants in the "Electronic Fund Transfer" (EFT) industry as defined by the Dodd-Frank Wall Street Reform and Consumer Protection Act. It covers every transaction initiated through an electronic terminal, telephone, computer, or magnetic tape that instructs a financial institution either to credit or to debit a consumer's asset account with
The federal protection rule includes the following:
The Dodd-Frank Remittance rules require companies to give accurate information to their customers before they pay for money transfers. The disclosures must contain:
The money transfer companies are required to provide customers with a receipt for the money transfer transaction that matches
The consumer will have 30 minutes to cancel the money transfer transaction. Under these circumstances, Money transfer service provider will refund the transfer amount back to the customer, regardless of the cancellation reason.
Remittance transfer providers will be held accountable for errors made on their part. If the consumer reports a complaint within 180 days of the transfer, the providers have to investigate, report & rectify the errors. Providers will also be held responsible for the mistakes made by their agents.
To get a detailed copy of the new remittance transfer rule: New Remittance Federal Regulation. To compare various money transfer companies and find the best way to send money to India, visit our Comparison Tool.
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