The Consumer Financial Protection Bureau's new remittance rule has caused lenders to argue for months, wondering if the rule would cause rates of international wire transfers to increase.
"To date, the average cost of sending money overseas has remained relatively stable in recent years," writes American Banker's Rachel Witkowski. The new rule's impact on the cost of international wires remains unknown.
"Overall, banks are ready but there's some of them that just don't understand the rule and unfortunately, there's going to be some turmoil," said Michael Rockouski, senior vice president of the financial institutions practice at global payments provider, Cambridge Mercantile Group. "For those banks, all heck will break loose come Oct. 28."
"Every institution we've spoken to, they're all placing premiums on any consumer-oriented payment now." he continued. "What was a $10 to $20 fee in the past will now be $20 to $40 This is going to change the landscape dramatically."
The remittance rule requires financial institutions to provide new disclosures including early cost estimates and error resolutions.
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