Articles

December 22, 2022

Enforcement Alert: CFPB Orders International Remittance Company to Pay $700,000 Penalty

Michael A. Goodman and Kristen Yarows

HIGHLIGHTS:

  • The CFPB ordered the International Remittance Company to pay approximately $30,000 in consumer redress and $700,000 in civil penalties for failing to comply with the Electronic Fund Transfer Act, the Remittance Transfer Rule, and the Consumer Financial Protection Act from 2013 until 2021.
  • The International Remittance Company neither admitted nor denied the allegations, but consented to the entry of an administrative order that requires it to update its disclosure information and implement error-resolution policies and procedures.

CASE SUMMARY:

On December 22, 2022, the CFPB filed an administrative consent order against an International Remittance Company headquartered in Rochelle Park, New Jersey. The order alleges that from 2013 until 2021, the International Remittance Company violated the Electronic Fund Transfer Act, the Remittance Transfer Rule, and the Consumer Financial Protection Act.

The CFPB found that the International Remittance Company failed to provide required refunds of fees and taxes when a sender properly submitted an error notice alleging a date of availability error and the International Remittance Company determined that such an error occurred. The CFPB also found that the International Remittance Company provided inaccurate disclosure information to customers, failed to develop and maintain sufficient error-resolution policies and procedures, and failed to maintain records showing compliance with the Electronic Fund Transfer Act and Remittance Transfer Rule. The alleged violations of the Electronic Fund Transfer Act and Remittance Transfer Rule also constituted violations of the Consumer Financial Protection Act.

In the Consent Order, the International Remittance Company did not admit these allegations. To resolve the matter, the International Remittance Company agreed to pay a $700,000 penalty and approximately $30,000 in consumer redress. The International Remittance Company must update its disclosure information and implement error-resolution policies and procedures.

RESOURCES:

You can review all of the relevant court filings and press releases on the CFPB's Enforcement Page.

Enforcement Alerts by Hudson Cook, LLP, written by the attorneys in the firm's Government Investigations, Examinations and Enforcement and Litigation practice groups, are provided to keep you informed of federal and state government enforcement actions and related actions that may affect your business. Please contact our attorneys if you have any questions regarding this Alert. You may also view articles, register for an upcoming CFPB Bites monthly webinar or request a past webinar recording on our website.

Hudson Cook, LLP provides articles, webinars and other content on its website from time to time provided both by attorneys with Hudson Cook, LLP, and by other outside authors, for information purposes only. Hudson Cook, LLP does not warrant the accuracy or completeness of the content, and has no duty to correct or update information contained on its website. The views and opinions contained in the content provided on the Hudson Cook, LLP website do not constitute the views and opinion of the firm. Such content does not constitute legal advice from such authors or from Hudson Cook, LLP. For legal advice on a matter, one should seek the advice of counsel.