The Consumer Financial Protection Bureau (CFPB) is considering new rules to address hidden fees and deceptive practices in international money transfers and remittances. This is a crucial opportunity to save consumers billions and ensure transparency in a market that’s vital to immigrant families.
A recent survey of 1,200 Latinos revealed the shocking extent of this problem: 94% of remittance users surveyed paid fees in the last year, with 47% paying $50 or more and 8% facing fees exceeding $300 for a single transaction. These costs are particularly burdensome as more than 55% of respondents cited inflation and lack of income as their top economic concerns.
The current system allows banks to advertise “no fee” transfers while secretly inflating exchange rates to pad their profits. This deceptive practice cost Americans $5.8 billion in hidden markups in 2023 alone. Even worse, “non-covered third-party fees” can surprise recipients with unexpected charges, completely exempt from disclosure requirements.
Americans for Financial Reform (AFR), NCLC, and our coalition partners are calling on the CFPB to require full transparency in remittance costs, including all hidden fees and exchange rate markups. This simple change could save consumers billions and foster real competition in the market.
If you’ve been personally impacted by hidden remittance fees, please share your story to strengthen our case.
Support NCLC
Please support NCLC's work to advance consumer rights and economic justice with a tax-deductible contribution today!
Donate