A report by the Appleseed Network found that the U.S. topped the list of remittance sending countries, at $56 billion at the end of 2014. The Appleseed report, Sending Money: The Path Forward, is based on data from a survey of international remittance customers’ preferences and behavior.
WASHINGTON, D.C. Landmark federal safeguards adopted in 2013 are protecting money sent abroad and the U.S. residents who send it, resulting in a stronger economy at home, according to a new survey released today by the Appleseed Network (“Appleseed”).
Before Consumer Financial Protection Bureau (“CFPB”) regulations increased pricing transparency for remittances used by immigrants and others to send money overseas, customers had inadequate up-front information about fees and exchange rates needed to compare the cost of different services. The report is significant in part because more than $600 billion was sent abroad using remittances last year, a number that is rapidly growing, with the U.S. topping the list of remittance sending countries, at $56 billion at the end of 2014, the latest year for which national data is available. Both figures dwarf the $46 billion in foreign assistance spent by the U.S. government in 2015.
The new Appleseed report, Sending Money: The Path Forward, is based on data from a survey of international remittance customers’ preferences and behavior, administered by Appleseed in five states from September 2015 through December 2015. Appleseed Centers in Connecticut, Kansas, Nebraska, Texas and Washington surveyed a total of 702 customers about their typical remittance transactions, comparison shopping behaviors, past problems with remittances, knowledge of their rights, and overall confidence in remittance services.
Appleseed played a lead role in advocating for the first U.S. federal consumer regulations for this important consumer financial service. The regulations were issued by the Consumer Financial Protection Bureau (“CFPB”) based on the authority contained in Section 1073 of the 2010 Dodd-Frank Act and became effective October 28, 2013. The intent of these regulations was to increase the transparency of the remittance process by mandating uniform disclosures so that consumers are better equipped to compare different remittance providers and make the most informed choice about which provider to use. The regulation also requires that the disclosures be in the foreign languages principally used by the remittance transfer provider to advertise, solicit, or market remittance transfer services.
