Question

Cindy lives in Charlotte NC and wants to send a $50 wire to her cousin in Ireland as a gift. Are we required to provide Cindy with a prepayment disclosure and a remittance receipt?

a) Yes
b) No
c) It depends on the amount of the wire transfer.
d) It depends on the bank's policy.

Answer 1

Cindy must receive a prepayment disclosure and a remittance receipt for her $50 wire transfer to Ireland according to the Consumer Financial Protection Bureau's Regulation E, which implements the Electronic Fund Transfer Act.

Step-by-step explanation:

When Cindy in Charlotte, NC wants to send a $50 wire transfer to her cousin in Ireland, she is indeed required to receive a prepayment disclosure and a remittance transfer receipt according to the Electronic Fund Transfer Act, specifically under the rules of the Consumer Financial Protection Bureau's (CFPB) Regulation E. Regardless of the transfer amount or the bank's policy, these rules apply to remittance transfers sent by consumers in the United States to individuals and businesses in foreign countries.

The prepayment disclosure provides details about the exchange rate (if applicable), fees, the amount to be transferred, and the amount expected to be received by the recipient. A remittance transfer receipt is then given upon payment, which includes information from the prepayment disclosure, as well as the date the money will be available, and the recipient's information. This helps ensure transparency and protection for consumers engaging in international wire transfers.