CFPB Settlement First Under Remittance Rule

Aug 27, 2019
The Consumer Financial Protection Bureau announced a settlement with Maxitransfers Corp. in the first enforcement action based on violations of the Remittance Transfer Rule, which implements the Electronic Fund Transfer Act.

According to the consent order, the CFPB found that Maxi violated the Consumer Financial Protection Act of 2010 by errantly telling consumers it would not be responsible for errors made by its third-party payment agents. The bureau also said Maxi used inaccurate language in disclosures and failed to maintain required policies and procedures to comply with error-resolution procedures.

Maxi must pay a $500,000 civil money penalty and improve its compliance management to prevent future violations.