Home > 106th Congressional Bills > S. 2869 (enr) To protect religious liberty, and for other purposes. [Enrolled bill] ...S. 2869 (enr) To protect religious liberty, and for other purposes. [Enrolled bill] ...
108th CONGRESS
2d Session
S. 2868
To amend the Electronic Fund Transfer Act to extend certain consumer
protections to international remittance transfers of funds originating
in the United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 30, 2004
Mr. Sarbanes (for himself, Mr. Corzine, Mrs. Clinton, Mr. Akaka, Mr.
Bingaman, Mr. Schumer, Mr. Dodd, Mrs. Boxer, and Ms. Mikulski)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Electronic Fund Transfer Act to extend certain consumer
protections to international remittance transfers of funds originating
in the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``International Remittance Consumer
Protection Act of 2004''.
SEC. 2. TREATMENT OF REMITTANCE TRANSFERS.
(a) In General.--The Electronic Fund Transfer Act (15 U.S.C. 1693
et seq.) is amended--
(1) in section 902(b), by inserting ``and remittance''
after ``electronic fund'';
(2) by redesignating sections 918, 919, 920, and 921 as
sections 919, 920, 921, and 922, respectively; and
(3) by inserting after section 917 the following:
``SEC. 918. REMITTANCE TRANSFERS.
``(a) Disclosures Required for Remittance Transfers.--
``(1) In general.--Each remittance transfer provider shall
make disclosures to consumers, as specified by this section and
augmented by regulation of the Board.
``(2) Specific disclosures.--In addition to any other
disclosures applicable under this title, a remittance transfer
provider shall clearly and conspicuously disclose, in writing
and in a form that the consumer may keep, to each consumer
requesting a remittance transfer--
``(A) at the time at which the consumer makes the
request, and prior to the consumer making any payment
in connection with the transfer--
``(i) the total amount of currency that
will be required to be tendered by the consumer
in connection with the remittance transfer;
``(ii) the amount of currency that will be
sent to the designated recipient of the
remittance transfer, using the values of the
currency into which the funds will be
exchanged;
``(iii) the total remittance transfer cost,
identified as the `Total Cost'; and
``(iv) an itemization of the charges
included in clause (iii), as determined
necessary by the Board; and
``(B) at the time at which the consumer makes
payment in connection with the remittance transfer, if
any--
``(i) a receipt showing--
``(I) the information described in
subparagraph (A);
``(II) the promised date of
delivery;
``(III) the name and telephone
number or address of the designated
recipient; and
``(ii) a notice containing--
``(I) information about the rights
of the consumer under this section to
resolve errors; and
``(II) appropriate contact
information for the remittance transfer
provider and its State licensing
authority and Federal or State
regulator, as applicable.
``(3) Exemption authority.--The Board may, by rule, and
subject to subsection (d)(3), permit a remittance transfer
provider--
``(A) to satisfy the requirements of paragraph
(2)(A) orally if the transaction is conducted entirely
by telephone;
``(B) to satisfy the requirements of paragraph
(2)(B) by mailing the documents required under such
paragraph to the consumer not later than 1 business day
after the date on which the transaction is conducted,
if the transaction is conducted entirely by telephone;
and
``(C) to satisfy the requirements of subparagraphs
(A) and (B) of paragraph (2) with 1 written disclosure,
but only to the extent that the information provided in
accordance with paragraph (2)(A) is accurate at the
time at which payment is made in connection with the
subject remittance transfer.
``(b) Foreign Language Disclosures.--The disclosures required under
this section shall be made in English and in the same languages
principally used by the remittance transfer provider, or any of its
agents, to advertise, solicit, or market, either orally or in writing,
at that office, if other than English.
``(c) Remittance Transfer Errors.--
``(1) Error resolution.--
``(A) In general.--If a remittance transfer
provider receives oral or written notice from the
consumer within 365 days of the promised date of
delivery that an error occurred with respect to a
remittance transfer, including that the full amount of
the funds to be remitted was not made available to the
designated recipient in the foreign country, the
remittance transfer provider shall resolve the error
pursuant to this subsection.
``(B) Remedies.--Not later than 90 days after the
date of receipt of a notice from the consumer pursuant
to subparagraph (A), the remittance transfer provider
shall, as applicable to the error and as designated by
the consumer--
``(i) refund to the consumer the total
amount of funds tendered by the consumer in
connection with the remittance transfer which
was not properly transmitted;
``(ii) make available to the designated
recipient, without additional cost to the
designated recipient or to the consumer, the
amount appropriate to resolve the error;
``(iii) provide such other remedy, as
determined appropriate by rule of the Board for
the protection of consumers; or
``(iv) demonstrate to the consumer that
there was no error.
``(2) Rules.--The Board shall establish, by rule, clear and
appropriate standards for remittance transfer providers with
respect to error resolution relating to remittance transfers,
to protect consumers from such errors.
``(d) Applicability of Other Provisions of Law.--
``(1) Applicability of title 18 and title 31 provisions.--A
remittance transfer provider may only provide remittance
transfers if such provider is in compliance with the
requirements of section 5330 of title 31, United States Code,
and section 1960 of title 18, United States Code, as
applicable.
``(2) Applicability of this title.--A remittance transfer
that is not an electronic fund transfer, as defined in section
903, shall not be subject to any of sections 905 through 913. A
remittance transfer that is an electronic fund transfer, as
defined in section 903, shall be subject to all provisions of
this title that are otherwise applicable to electronic fund
transfers under this title.
``(3) Rule of construction.--Nothing in this section shall
be construed--
``(A) to affect the application to any transaction,
to any remittance provider, or to any other person of
any of the provisions of subchapter II of chapter 53 of
title 31, United States Code, section 21 of the Federal
Deposit Insurance Act (12 U.S.C. 1829b), or chapter 2
of title I of Public Law 91-508 (12 U.S.C. 1951-1959),
or any regulations promulgated thereunder; or
``(B) to cause any fund transfer that would not
otherwise be treated as such under paragraph (2) to be
treated as an electronic fund transfer, or as otherwise
subject to this title, for the purposes of any of the
provisions referred to in subparagraph (A) or any
regulations promulgated thereunder.
``(e) Publication of Exchange Rates.--The Secretary of the Treasury
shall make available to the public in electronic form, not later than
noon on each business day, the dollar exchange rate for all foreign
currencies, using any methodology that the Secretary determines
appropriate, which may include the methodology used pursuant to section
613(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2363(b)).
``(f) Agents and Subsidiaries.--A remittance transfer provider
shall be liable for any violation of this section by any agent or
subsidiary of that remittance transfer provider.
``(g) Definitions.--As used in this section--
``(1) the term `exchange rate fee' means the difference
between the total dollar amount transferred, valued at the
exchange rate offered by the remittance transfer provider, and
the total dollar amount transferred, valued at the exchange
rate posted by the Secretary of the Treasury in accordance with
subsection (e) on the business day prior to the initiation of
the subject remittance transfer;
``(2) the term `remittance transfer' means the electronic
(as defined in section 106(2) of the Electronic Signatures in
Global and National Commerce Act (15 U.S.C. 7006(2))) transfer
of funds at the request of a consumer located in any State to a
person in another country that is initiated by a remittance
transfer provider, whether or not the consumer is an account
holder of the remittance transfer provider or whether or not
the remittance transfer is also an electronic fund transfer, as
defined in section 903;
``(3) the term `remittance transfer provider' means any
person or financial institution that provides remittance
transfers on behalf of consumers in the normal course of its
business, whether or not the consumer is an account holder of
that person or financial institution;
``(4) the term `State' means any of the several States, the
Commonwealth of Puerto Rico, the District of Columbia, and any
territory or possession of the United States; and
``(5) the term `total remittance transfer cost' means the
total cost of a remittance transfer expressed in dollars,
including all fees charged by the remittance transfer provider,
including the exchange rate fee.''.
(b) Effect on State Laws.--Section 919 of the Electronic Fund
Transfer Act (12 U.S.C. 1693q) is amended--
(1) in the first sentence, by inserting ``or remittance
transfers (as defined in section 918)'' after ``transfers'';
and
(2) in the fourth sentence, by inserting ``, or remittance
transfer providers (as defined in section 918), in the case of
remittance transfers,'' after ``financial institutions''.
SEC. 3. FEDERAL CREDIT UNION ACT AMENDMENT.
Paragraph (12) of section 107 of the Federal Credit Union Act (12
U.S.C. 1757(12)) is amended to read as follows:
``(12) in accordance with regulations prescribed by the
Board--
``(A) to provide remittance transfers, as defined
in section 918(h) of the Electronic Fund Transfer Act,
to persons in the field of membership; and
``(B) to cash checks and money orders for persons
in the field of membership for a fee;''.
SEC. 4. AUTOMATED CLEARINGHOUSE SYSTEM.
(a) Expansion of System.--The Board of Governors of the Federal
Reserve System shall work with the Federal reserve banks to expand the
use of the automated clearinghouse system for remittance transfers to
foreign countries, with a focus on countries that receive significant
remittance transfers from the United States, based on--
(1) the number, volume, and sizes of such transfers;
(2) the significance of the volume of such transfers,
relative to the external financial flows of the receiving
country; and
(3) the feasibility of such an expansion.
(b) Report to Congress.--Not later than 180 days after the date of
enactment of this Act, and on April 30 biannually thereafter, the Board
of Governors of the Federal Reserve System shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the
status of the automated clearinghouse system and its progress in
complying with the requirements of this section.
SEC. 5. EXPANSION OF FINANCIAL INSTITUTION PROVISION OF REMITTANCE
TRANSFERS.
(a) Provision of Guidelines to Institutions.--Each of the Federal
banking agencies (as defined in section 3 of the Federal Deposit
Insurance Act) and the National Credit Union Administration shall
provide guidelines to financial institutions under the jurisdiction of
the agency regarding the offering of low-cost remittance transfers and
no-cost or low-cost basic consumer accounts, as well as agency services
to remittance transfer providers.
(b) Content of Guidelines.--Guidelines provided to financial
institutions under this section shall include--
(1) information as to the methods of providing remittance
transfer services;
(2) the potential economic opportunities in providing low-
cost remittance transfers; and
(3) the potential value to financial institutions of
broadening their financial bases to include persons that use
remittance transfers.
(c) Assistance to Financial Literacy Commission.--The Secretary of
the Treasury and each agency referred to in subsection (a) shall, as
part of their duties as members of the Financial Literacy and Education
Commission, assist that Commission in improving the financial literacy
and education of consumers who send remittances.
SEC. 6. STUDY AND REPORT ON REMITTANCES.
(a) Study.--The Comptroller General of the United States shall
conduct a study and analysis of the remittance transfer system,
including an analysis of its impact on consumers.
(b) Areas of Consideration.--The study conducted under this section
shall include, to the extent that information is available--
(1) an estimate of the total amount, in dollars,
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