CU Manager Testifes On Abuses In Funds Transfers

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Pablo DeFilippi, Manager/ CEO, Lower East Side People's FCU, testified before a state legislative committee investigating abuses in the funds transfer industry.

The hearing, organized by the Assembly Standing Committee on Banks, Assembly Standing Committee on Consumer Affairs and Protection, Assembly Puerto Rican/Hispanic Task Force and the NYC Department of Consumer Affairs, was seeking information on international money transfer costs to consumers, exchange rate costs, disclosures and information presented to consumers, and the structure of the remittance industry.

"Immigrants work hard to earn money to send back to their home countries and in the process may be subject to an international remittance industry that charges high fees and offers confusing disclosures, if any, to these low-income, financially unsavy consumers," said DeFilippi. "Credit unions strive to offer better rates and the 'credit union difference' to the unbanked that send most of that money to families 'back home.'"

According to the state league, 20.4% of the New York's residents are foreign born. In New York City, that figure is 36%.

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