Conflict – Torn Areas May Suffer Payment Cut-OffsBanker Resource
October 9, 2013 — 1,339 views
The Consumer Financial Protection Bureau (CFPB), along with the Dodd-Frank Act may soon deny payments and remittances to people who are in areas that are torn apart by internal conflict. High conflict zones and areas that have recently suffered similar crises will face a huge regulatory burden due to the new strict and difficult rules applied to the remittance payment procedures. This may in fact even motivate people to leave such regions so that they are not denied of the payments they should otherwise receive.
The logic is to protect the finances of citizens in other locations, and create a transparent system where there is no inflation of prices in certain parts. However, many people are unhappy with the upcoming changes because of the desperate need for these payments. Service and delivery charges are still manageable and not a very large amount at an individual level; however, the total amount that is being lost in simply transferring funds is the cause for the amendments being made to the Act.
Unhappy Sentiment with Regard to the Changes
People residing in affected parts are extremely dissatisfied with these changes in law because it creates unnecessary and inconvenient clauses which make it harder to receive funds in such locations. However, the necessity is undeniable because of the unstable state of the regions. Relief funds being cut off makes it difficult for residents in conflict stricken zones.
Reports state that many people are considering moving out of such areas due to this revision of the Act. This is also difficult with the current financial situation. The current shutdown has also had adverse effects and the sentiments of the citizens are slowly on the downfall. Without faith in the system, there could be outbreaks and instability within the country; a fear that does not seem very far-fetched.
Scope for Certain Exemptions
The final revision of the Dodd-Frank Act will come into effect only on October 28, 2013 and there is still opportunity to make certain tweaks or changes. The CFPB has also kept certain exemption clauses for certain bank accounts. The issue is that many people belonging to the lower social economic strata in the world may not be able to utilize the positives of this clause due to a lack of having a bank account. Instead, it has been recommended that CFPB allow this clause to apply to card transfers and mobile transfers as well.