January 14, 2013
Monica Jackson
Office of the Executive Secretary
Consumer Financial Protection Bureau
700 G Street, N.W.
Washington, D.C. 20220
RE: Docket No. CFPB-2012-0050 and RIN 3170-AA33; Proposed Rule on Temporary Delay and Delayed Implementation Date of Remittance Transfer Rule
Dear Ms. Jackson:
On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association that exclusively represents federal credit unions, I am writing to you regarding the Consumer Financial Protection Bureau’s (CFPB) proposed rule and request for comment on amendments to Regulation E with respect to remittance transfers. See 77 Fed. Reg. 77188 (December 31, 2012).
This comment letter is in response to the CFPB’s proposal to temporarily delay the effective date of the Final Rule and to delay implementation of the entire remittance rule until 90 days after the changes are finalized. NAFCU strongly supports both delays. NAFCU has engaged with the CFPB throughout the remittance transfer rulemaking process and has requested that the CFPB provide regulatory relief for credit unions with respect to this matter. NAFCU appreciates the CFPB’s responsiveness.
Despite the benefits of both delays, NAFCU does not believe this proposed change will constructively or completely solve the problems associated with the remittance transfer rule. First, NAFCU requests that the CFPB further extend the 90-day delay of the effective date to allow credit unions sufficient time to comply with the proposed rule and to make the required disclosures of fees, taxes, and exchange rates. Second, NAFCU continues to believe that the CFPB should exempt federally regulated credit unions, or, alternatively, small entities consistent with the Small Business Regulatory Enforcement Fairness Act, from the purview of the final remittance transfer rule. The regulatory burden that the remittance transfer rule places on credit unions will lead to a significant reduction in consumers’ access to remittance transfer services. Many credit unions already facing an enormous compliance burden have or will be forced to discontinue their remittance programs, and those that continue to offer remittances will be forced to significantly increase their members' fees.
Further, NAFCU would like to reiterate the necessity for the CFPB to respond to credit union concerns during the rulemaking process, rather than implementing remedial measures after the fact. Although NAFCU appreciates the CFPB’s responsiveness to reconsider the remittance rule, proactive efforts by the CFPB to address potential problems and reduce the future compliance costs and regulatory difficulties faced by credit unions would be far more effective when conducted prior to and during the rulemaking process.
NAFCU appreciates the opportunity to share its thoughts on remittance transfer requirements and would like to discuss this matter further. NAFCU intends to submit additional comments on the substantive issues of the proposal to amend the remittance transfer rule by the January 30th deadline. Should you have any questions or concerns, please feel free to contact me at fbecker@nafcu.org or (703) 842-2215 or Angela Meyster, NAFCU’s Regulatory Affairs Counsel at ameyster@nafcu.org or (703) 842-2272.
Sincerely,
Fred Becker, Jr.
President and CEO