Thursday, October 25, 2018
Consumer Protections for International Remittances
Entrepreneur Garad Nor launched his first money transfer business in 1993 in Marshall, Minnesota. Ten years later, Garad Nor turned around Tawakal Express, an international remittance firm that handles millions of dollars each month. In addition to providing secure, reliable service, Tawakal Express operations follow all the laws and rules set forth by regulatory bodies such as the Consumer Financial Protection Bureau (CFPB).
Many consumer protections regarding electronically-transferred remittances are enshrined within the 2014 CFPB remittance rules. Before an international transaction is completed, remittance companies are required to clearly state the exchange rate, any additional fees, applicable taxes, and the amount directly wired to the receiver.
Recipients are also notified in writing of their rights and the company’s cancellation and dispute policies. Remittance agencies are also required to provide their clients with their privacy policy and a disclosure that includes the expected transaction date and ways to contact relevant regulators. Many companies translate these policies into the most common languages used by their customers.
Under these rules, consumers are protected against errors such as unequal exchange rates for senders and recipients or transfer delays caused by actions of the agency. Additionally, all errors have a reporting period of 180 days. Agencies can take up to 90 days to investigate any error claims and must resolve the error if the agency is found liable.
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