On 12/13/21, the CFPB updated its list of frequently asked questions on Electronic Fund Transfers provisions of Regulation E. Previously, the Reg E FAQs included only 8 questions and answers in a single category. Now, the FAQs include four categories and a total of 24 FAQs.

On 6/4/2021, the Consumer Financial Protection Bureau (CFPB) issued a set of frequently asked questions (FAQs) under the topic of “Unauthorized Electronic Fund Transfers, Subpart A to Regulation E.” This FAQs provide guidance on several areas financial institutions have struggled with over the years, including topics like determining how to handle instances where consumer share account access information with third parties who fraudulently obtain the information, consumer negligence, private network rules, and requiring police reports. These FAQs appear to be the first of several topics, so compliance professionals should stay tuned over the next few years to see if more Reg E FAQs are released by the CFPB.

The CFPB has recently updated its Small Entity Compliance Guide on Remittance Transfers to correspond with the May 11, 2020 changes to the rule. The main changes to this guide include the following:

On May 11, 2020, the CFPB issued a final rule covering remittances transfers, which imposes requirements on entities that send international money transfers (i.e. remittance transfers) on behalf of consumers. Among its requirements, the Remittance Rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient. The existing Remittance Rule also allows for depository institutions to estimate certain fees and exchange rate information under certain circumstances, but by statute, this provision expires in July 2020.

The new final rule allows certain banks and credit unions to continue to provide estimates of the exchange rate and certain fees under certain conditions. This could preserve consumers’ ability to send remittances from their bank accounts to certain countries or recipient institutions. In addition, the new final rule also increases the threshold that determines whether an entity makes remittance transfers in the normal course of its business and is subject to the Rule. Specifically, entities making 500 or fewer transfers annually in the current and prior calendar years would not be subject to the Rule. In their issuance, the CFPB states that this will reduce the burden on over 400 banks and almost 250 credit unions that send a relatively small number of remittances.