United States of America: Issued CFPB Consumer Financial Protection Circular 2024-02 on deceptive marketing practices about the speed or cost of sending a remittance transfer

On 27 March 2024, the Consumer Financial Protection Bureau (CFPB) issued the Consumer Financial Protection Circular 2024-02 on deceptive marketing practices about the speed or cost of sending a remittance transfer. The circular outlines several marketing practices that may violate the Consumer Financial Protection Act (CFPA). The circular applies to traditional providers of international money transfers and to digital wallets that offer the ability to send money internationally from the United States. The circular addresses deceptive practices such as falsely claiming no fees or free services, including promotional terms in fine print, and misrepresenting how long transfers will take. The CFPA stated that the circular was issued as a result of concerns about transparency, noting that prior to the Dodd-Frank Act, providers weren't uniformly required to disclose fees, exchange rates or transfer speeds, hindering consumers' ability to make informed decisions. The CFPA noted that the Dodd-Frank Act and the Remittance Rule now require full disclosure of all associated costs before and at the point of payment, with the aim of improving clarity for consumers. The CFPB claimed that it had identified deceptive practices in the marketing of remittance services that require explicit guidance to protect consumers from misleading claims and ensure fair treatment in the financial marketplace.