Archive

CFPB PUBLISHES EFT FAQS

On June 4, 2021, the Consumer Financial Protection Bureau published eight Electronic Fund Transfers FAQs. The Frequently Asked Questions address: Do fraudulent inducements constitute “unauthorized electronic fund transfer?” In a fraudulent inducement has a consumer furnished an access device under Regulation E? Can negligence by the consumer be used as the basis for imposing greater liability than is permissible under Regulation E.? Can an agreement restrict a consumer’s rights beyond what is provided in the […]

TD Bank Settlement $122 Million for Overdraft Practices

The Consumer Financial Protection Bureau (CFPB) announced a settlement with TD Bank, N.A. for $122 million – an estimated $97 million in restitution to be paid to approximately about 1.42 million consumers and a civil money penalty of $25 million, along with adjustments to the Bank’s processes. What was the reason for this hefty consent order with the CFPB? The CFPB’s consent order states that TD Bank violated the: Electronic Funds Transfer Act and Regulation […]

CFPB PROPOSES CHANGES TO REMITTANCE TRANSFER RULE

The Consumer Financial Protection Bureau (CFPB) has issued a Notice of Proposed Rulemaking (NPRM) related to the Remittance Transfer Rule implemented in Regulation E (Electronic Fund Transfers Act). The Remittance Transfer Rule establishes protections for consumers sending international money transfers or remittance transfers by requiring remittance transfer providers to disclose the exact exchange rate that applies, the amount to be received by the recipient, and certain fees and other information associated with the transfer. The […]

REMITTANCE TRANSFER RULE CONSENT ORDER

On August 27, 2019 the Consumer Financial Protection Bureau (CFPB) announced a settlement with Maxitransfers Corporation (Maxi), a company that serves consumers looking to send money overseas. This is the CFPB’s first enforcement action based on violations of the Remittance Transfer Rule, which implements the Electronic Fund Transfer Act (EFTA). Maxi provides remittance transfer services from more than 1,600 third-party locations in the U.S., such as grocery stores and pharmacies, to over 19,500 payment locations […]

PREPAID ACCOUNTS – EXAMINATION PROCEDURES

The Federal Deposit Insurance Corporation has released examination procedures for Prepaid Accounts to incorporate the Consumer Financial Protection Bureau’s (CFPB) amendments to Regulation E and Regulation Z. The examination procedures may be helpful to financial institutions seeking to better understand how examiners will evaluate an institution’s compliance with the prepaid account rule.. On October 3, 2016, the CFPB published its Final Rule for Prepaid Accounts to create comprehensive consumer protections for prepaid accounts. Specifically, the […]