WASHINGTON—In a letter to the CFPB, 16 House Financial Services Committee Republicans, urged the agency to extend an exemption allowing banks to continue estimating third-party fees and exchange rates, rather than providing exact figures, for money consumers send abroad.
The exemption, which is set to expire in July 2020, applies to roughly 6% of bank transfers, or a fraction of 1% of all remittance transfers, according to CFPB data. But that figure was still 886,000 transactions as of 2017, Banking Dive reported.
No single institution has control over a remittance from end to end, the lawmakers wrote, making it a potential challenge for a bank to provide exact figures for fees and exchange rates that apply while money is in transit. If the exemption ends, many institutions may stop providing remittance services for fear they'd no longer comply with the rule, the lawmakers wrote.