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#1828366 - 06/27/13 06:15 PM Combined Disclosure Receipt?
zitch70 Offline
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1005.31(b)(3) (i) In General. As an alternative to providing the disclosures described in paragraphs (b)(1) and (b)(2) of this section, a remittance transfer provider may provide the disclosures described in paragraph (b)(2) of this section, as applicable, in a single disclosure pursuant to the timing requirements in paragraph (e)(1) of this section. If the remittance transfer provider provides the combined disclosure and the sender completes the transfer, the remittance transfer provider must provide the sender with proof of payment when payment is made for the remittance transfer. The proof of payment must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form. What is the proof of payment if it is not the receipt as required under (b)(2)? b2 is model form A31 and the combined model form is A32 both identical. DO we have to give the sender both the A32 when ordering the transfer and the A31 when they pay for the transfer?

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Remittance Transfer Rule
#1828460 - 06/27/13 07:51 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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If youi use the combine pre-payment disclosure and receipt, you have to include all the information that would appear on the receipt but you have to provide the combined disclosure before payment (at the time you'd give the first part of the two-step disclosure). The proof of payment that you'd supply once the Sender provides payment is something like a rubber "Paid" stamp or a confirmation number or other information that documents actual payment.
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#1838456 - 08/01/13 03:02 PM Re: Combined Disclosure Receipt? John Burnett
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John, we only provide transfer for account holders, with funds coming directly out of their account at the time of the request. My understanding is that we can provide the combined disclosure at the time of the request and then mail a receipt to the account holder once the wire is processed (assuming they don't cancel the request).

Or... is it possible to only provide the combined disclosure and no receipt? I guess I don't understand why a receipt is needed really. Once the account holder signs for the wire, the assumption is that it will be sent after 30 minutes unless they cancel.

Thanks.

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#1838552 - 08/01/13 05:21 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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The combined disclosure is one that meets the requirements of §1005.31(b)(3). It combines both the pre-payment disclosure of .31(b)(1) and the receipt of (b)2), using the timing requirements that apply to the pre-payment disclosure. That means it has to be given BEFORE the consumer gives you the payment (or the authorization to charge the consumer's account). But there is still a second step required -- that of providing "the sender with proof of payment when payment is made for the remittance transfer. The proof of payment must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form." From the Commentary: "The proof of payment for the transaction may be provided on the same piece of paper as the combined disclosure or on a separate piece of paper. For example, a provider may feed a combined disclosure through a computer printer when payment is made to add the date and time of the transaction, a confirmation code, and an indication that the transfer was paid in full. A provider may also provide this additional information to a sender on a separate piece of paper when payment is made. A remittance transfer provider does not comply with the requirements of §1005.31(b)(3) by providing a combined disclosure with no further indication that payment has been received."

There are only certain circumstances that permit you to mail the receipt (or the combined disclosure and receipt). A mailed disclosure can be used in connection with pre-authorized transfers. It may also for an individual transfer if the transfer was requested and agreed to entirely by telephone.
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#1838594 - 08/01/13 06:23 PM Re: Combined Disclosure Receipt? John Burnett
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This is the part I'm not getting apparently. If our account holder pays for the wire out of their account immediately after receiving the first disclosure, and has the right to cancel the wire within 30 minutes of payment, they will leave our office before the 30 minutes time period. We would have no way of providing them the second disclosure, or stamp their initial disclosure, because we plan on waiting at least 45 minutes after they pay to send the wire in order to accommodate the cancellation period. Perhaps I'm missing another caveat or the regulation makes this awkward for our operations? Any clarification is greatly appreciated.

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#1838620 - 08/01/13 07:08 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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You're missing the importance of the timing requirements.

Except for telephone-requested and recurring transfers, there are two times at which disclosures are required.

1. At the time the transfer is requested and before it's paid for. This is the time at which you must provide the pre-payment disclosure or the combined pre-payment disclosure and receipt.

2. At the time of payment, which is the moment when the consumer pays or gives you the authorization to charge his/her account. If you don't provide a combined pre-payment disclosure and receipt, this is time you must provide the receipt. If you did provide a combined pre-payment disclosure and receipt, this is the time you must provide written evidence of payment.

You don't get to wait until the cancellation period has lapsed and you've sent the transfer. Significantly, the receipt or the combined prepayment disclosure/receipt is where you include the notice of the 30-minute right to cancel. Clearly, you have to do this before the cancellation period is over.
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#1838686 - 08/01/13 08:41 PM Re: Combined Disclosure Receipt? John Burnett
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Sorry John. I wasn't trying to skirt the 30 day issue. I was mixing up the funding portion in my mind. I was assuming the receipt needed to be provided after the wire was actually sent, as opposed to when the account holder actually pays/approves the wire. Thanks for clarifying.

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#1838906 - 08/02/13 03:47 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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That's what I thought was confusing the issue. Providers are at risk during that 30-minute (minimum) delay if exchange rates are volatile, unless they are able to lock a rate for a period of time.
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#1839230 - 08/02/13 10:24 PM Re: Combined Disclosure Receipt? John Burnett
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I hope I'm not over thinking this...
We plan on providing the combined disclosure and receipt when they initially request the wire. Once they pay for it, can we just give them the receipt use normally by our core banking system that reflects the dollar amount debited from their account. Or is there another combined disclosure needed? Once again sorry.

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#1839258 - 08/04/13 10:23 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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Assuming that your combined prepayment disclosure and receipt, permitted under 1005.31(b)(3), includes all the required information other than "proof of payment," there is no specific form of proof of payment. You "must provide the sender with proof of payment when payment is made for the remittance transfer. The proof of payment must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form." The written copy of the debit to the customer's account should meet that requirement handily, I think, as long as you are, in fact, charging his account. Or it could be a credit/debit card purchase receipt or some other proof of payment. Just make sure that it is given to the consumer at the appropriate time. It's not later when some other department finally charges the account (if that's the way you will handle these transactions). It's at the time the consumer says "charge my account," "here's my card," etc.
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#1839284 - 08/05/13 01:44 PM Re: Combined Disclosure Receipt? zitch70
GoGreen Offline
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I have a question if the combine disclosure as dicussed in this thread does not work as we see it working, can we switch our processes to go the two disclosures at any time?

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#1845075 - 08/22/13 07:04 PM Re: Combined Disclosure Receipt? zitch70
anabanana Offline
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Sorry to appear dense - We only originate wires as a debit from an account when the wire transactions in processed. The customer makes the request in a branch, the branch verifies the funds are in the account, the wire request is forwarded to the wire room. After 1/2 hour the wire room debits the customer's account and the wire is sent. A system-generated confirmaiton is sent to the customer nex business day.
We anticipate providing the combined disclosure/receipt at the time of the request. If we are providing the confirmation as described above, after the wire is sent, are we not in compliance?
If we provide either the Predisclosure and receipt or the combined disclosure, but at the time the wire is actually processed, 30 minutes later or longer if an OFAC delay, and the funds are no longer in the account, could there be an issue? It is troubling that we are expected to provide a receipt prior to the actual transaction taking place. It is not logical to make a customer wait in a branch office for 30 mints?
Anyone?

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#1845086 - 08/22/13 07:21 PM Re: Combined Disclosure Receipt? GoGreen
John Burnett Offline
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Originally Posted By: GoGreen
I have a question if the combine disclosure as dicussed in this thread does not work as we see it working, can we switch our processes to go the two disclosures at any time?
Yes.
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#1845089 - 08/22/13 07:27 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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First, hold the funds when you get the OK from the Sender to charge his account. Once you've closed the deal, you're committed to sending it (unless OFAC problems cause a delay).

You have to provide the receipt at the time of payment, which in your case is at the start of the 30-minute delay (when you get the OK to charge the customer's account). That receipt needs to include documentation of payment. The confirmation from the wire folks can include other stuff, like a confirmation number, etc., that is in addition to the required receipt information.
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#1845705 - 08/25/13 01:21 PM Re: Combined Disclosure Receipt? zitch70
anabanana Offline
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I was afraid you would say that. it appears that, yet again, even though the customer is requesting the transaction, and one would think they would have the funds since they are initiating the wire request, we are protecting consumers from themselves. It would seem that if a consumer initiates a transaction, any transaction, even the simple writing of a check, there is a responsibility for them to have the funds in their account to cover the request. Assuming a simple hold can be placed in a branch, and then removed, but not by the wire room, which does not have access to the deposit system for obvious reasons, we are now creating another process , more risk. Possibly another risk based decision, if we have not had a history of the funds not being in the account after our historically imposed 30 minute waiting period, is it worth taking a chance not putting a hold on, and contacting the customer if the funds are not in the account? Sounds like this might play out in a court of law? Thanks, so not logical!

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#1845785 - 08/26/13 03:00 PM Re: Combined Disclosure Receipt? zitch70
John Burnett Offline
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It's not such a big deal, I think. When your teller cashes a check on an on-us account, doesn't he/she place a hold on the account to prevent intervening debits before posting is finalized? Why should this be any different. It can drop off at night when you update.

As you say, it's a risk decision, but I think the risk can be mitigated using a standard teller hold. But that presumes knowledge about your system that I don't have.
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