We understand the anxiety many are feeling in light of the proposed mass deportations by the incoming administration. We are currently working on an updated version of our manual on protecting child custody and assets for 2025 and are committed to making it available as soon as possible. In the meantime, please find our 2017 manual below, available in both English and Spanish, to help guide you through these challenging times.
We are continuing to roll out updated sections of the manual and will have Spanish translations soon. Please note these are living documents and changes may be made periodically. Each topic is intended to provide generalized information on a particular topic. In many cases, laws may differ from state to state. Therefore, this information is not intended to replace state-specific legal assistance. Nothing in this manual is intended to create an attorney-client or fiduciary relationship.
Continuamos implementando secciones actualizadas del manual y próximamente estarán disponibles las traducciones al español. Por favor, tenga en cuenta que estos son documentos vivos y que los cambios pueden realizarse periódicamente. Cada tema está diseñado para proporcionar información general sobre un asunto en particular. En muchos casos, las leyes pueden variar de un estado a otro. Por lo tanto, esta información no pretende sustituir la asistencia legal específica de su estado. Nada en este manual tiene la intención de crear una relación abogado-cliente o fiduciaria.
There are many ways to keep your hard-earned money if you are deported. There is no need to withdraw your full account and keep it at home or carry it with you. You may lose your money this way or it may be stolen. This section provides suggestions to address the following issues:
Keeping Your Account Open ➤ Managing Your Account, Yourself ➤ Creating a Joint Bank Account ➤ Granting a Financial or Limited Power of Attorney ➤ Closing Your Bank Account ➤ Safety Deposit Boxes ➤ Checklist: Managing, Accessing and Closing a Bank Account
You don’t have to lose your money because you are being deported. Call your bank and make sure you know all of your options before making decisions about your bank account. Be sure to update your bank with all of your information, including any new addresses or contact details.
Each Chapter is intended to provide generalized information on a particular topic. In many cases, laws may differ from state to state. Therefore, this information is not intended to replace state-specific legal assistance. Nothing in this manual is intended to create an attorney-client or fiduciary relationship.
You may want to keep your account open if you have ongoing financial obligations in the U.S. such as a mortgage, children or family to care for, or a pension. If you will be transferring money to your international accounts, be mindful of fees that you may be charged. For example, to transfer money between your U.S. account and international account, you may be charged fees for both sending and receiving the funds, which can get costly.
If you want to keep your account open you have a few options in how to manage the account from your home country. You can:
When you manage your account, the account stays in your complete control. To make this possible, banks often have local branches or ATMs abroad. You also may be able to manage your account via telephone, online banking, or third-party smartphone applications (e.g., digital wallets). Digital wallet apps may allow you to transfer your money between the U.S. and other countries more easily. Make sure to ask your bank what the best way is to manage your account abroad.
In addition, while maintaining your account, never share your personal information like your identification numbers or account numbers with anyone or any business that you do not trust. Also, you should frequently change your passwords to any online bank accounts and make sure that the passwords are strong. If you do notice fraudulent activity, notify your bank as soon as possible.
Be careful of:
Make sure to discuss all of these concerns with your bank in order to avoid any potential problems and reduce the likelihood of fraudulent activity.
Adding someone to your account will give them the power to manage the account in full. They will also legally own everything in the account. For that reason, you should choose a person who is very close to you and whom you trust. You may either add someone to the account you already have open or open a new joint account. This can be done in-person or, in some cases, online. The person you choose to add to your account may be required to provide their personal information to the bank electronically or in-person.
Your bank may also provide an option to allow you to add a trusted person to your account, not as a full joint owner, but with more limited rights. In such a case, the added person may have less power over your account and money than a joint owner would and can only take limited actions. Contact your bank for additional details about creating a joint account or adding a person to an account in a more limited capacity to ensure you understand your options and the access rights you would be giving.
Be aware that:
You can choose a person you trust and give them a financial or limited power of attorney. This will allow the appointed person to manage the account on your behalf. You can learn more in the Power of Attorney section (Chapter 10).
Some banks do not allow for powers of attorney. Check with your bank.
You may want to close your account if you don’t have any financial obligations in the U.S. and you need easy access to the money in your home country. Even if you withdraw all the money in your account before leaving the U.S., you may still want to formally close your account so you are not charged any fees for keeping your account open.
To close your account, find out the procedures for your bank. Many banks will let you close your account in person at a branch location, on the phone, or by mail. A few banks will even let you close your account online. There may be special procedures if you have a joint account. If you are closing your account from abroad, you will have to write a letter with specific information to your local branch. Make sure all of your checks and automatic payments have cleared before closing the account. You may be prevented from closing your checking account if you have a negative balance.
To get your money you will have to choose between a check or transfer or, if permitted by the bank, having your money loaded onto a prepaid card that you can carry which may be safer than cash. Check to make sure that you are able to deposit a foreign check into a bank account in your home country and be aware of any relevant fees or requirements for processing international checks. For example, see Condusef’s recommendations for depositing international checks in México and other tips for sending money to México. If you choose a check, you will have to carry the check to your home country. When you are there, you can deposit it in your home country account, but it may take 40-60 days to clear. For a bank draft and wire transfer you will already need an account in the home country. See Chapter 16 on Taking Money Across the Border for more tips.
Tip: Be extremely careful of security concerns like fraud or robbery when traveling with cash or a check, even if it is written in your name.
If you want to keep your safety deposit box open you will have to add another person to the account as a joint renter, or choose a deputy who can access the safety deposit box. Some banks will not allow you to use a general power of attorney to give another person access to your safety deposit box. If you want to close your box, make sure to do so before leaving for your home country.
Payday and other short-term debts, such as car title loans, do not go away. However, you can manage debt by prioritizing which debts are paid first, discontinuing automatic repayments and potentially working out a payment arrangement with the lender that you can afford. This section will address these topics:
The debt for a payday loan (sometimes also called cash advance loans) and other short-term loans exists regardless of where you live. The obligation to repay the debt does not disappear when a person leaves the country. If you miss a loan payment, you will likely incur fees and penalties on your debt. A lender may or may not try to collect this debt depending on the existence of collateral or co-signers and the borrower’s location.
The effective annual percentage rate (APR) on payday and other short-term loans is far greater than most other forms of debt, such as credit card debt. Payday loans often have an effective APR of 400% to 600% or higher. By comparison, APRs on credit cards can range from about 12% to 30%. Some states have rules related to how much interest a payday lender can charge; however, other states, such as Texas, allow payday lenders to charge unlimited interest and fees for nonpayment.
Debt collectors have a limited time during which they can sue debtors for nonpayment (see below under “The debt may no longer be legal”). If a lender sues you in a United States court and wins a favorable judgment against you (which can happen even without you present, in which case it is called a “default judgment”), it will only be able to enforce the judgment in a country outside of the United States if that country has an agreement with the United States that U.S. judgments are enforceable in that country.
The National Consumer Law Center advises debtors to prioritize their debts and decide which bills they must pay first, usually household expenses (home, apartment, food and medicine), cell phone and other utilities, car and appliances such as refrigerator or washing machine.
These are some of the key steps they recommend:
You may be able to make an alternative payment arrangement directly with the lender, such as an extended payment period or change in repayment amount. Any new terms agreed with the lender should be in writing and
you and your representative should keep track of all communications with the lender, including notes about interactions in person or over the phone. You should also keep any emails or letters received from the lender and the lender’s contact information. You may also be able to get more time to repay a payday loan without being charged extra fees through an Extended Payment Plan (EPP), if permitted by state law.
You can withdraw your permission to the lender to take money from your bank account. Some payday and other short-term loans require a written Automated Clearing House (ACH) authorization, which gives the lender permission to electronically take money from the customer’s checking or savings account when payment is due. Cancellation or revocation of an ACH authorization will prevent such withdrawals from being made from your account or stop payment on checks. However, it will not prevent the lender from applying fees and penalties on overdue payments or from seeking civil remedies. For example, if you gave the lender a post-dated check and there is not enough money in the account to pay the check when the lender submits it to the bank, the lender will charge you fees and penalties and the bank may charge an overdraft fee.
Garnishment is a court order that allows creditors to take repayment directly from a debtor’s paycheck or bank account. Garnishment varies significantly from state to state, so risks are higher for someone with assets who is in a more permissive garnishment state. The likelihood that a court will order a garnishment against you is higher if there is a default judgment. If the debt is taken to court for collection and you have granted someone your power of attorney, that person may engage a lawyer for you and make legal decisions on your behalf to avoid a default judgment (but unless the person is a lawyer s/he cannot represent you in court).
Debt collectors have a limited time during which they can sue debtors for nonpayment. Such time limits differ by state and are set by each state’s statute of limitations. For example, in Texas, after four years the debt is time-barred and the debtor can no longer pursue a court judgment for collections. In some states where there is a 36% or lower rate cap in place and the loan is online, the loan could be illegal and thus not be required to be repaid because legally it is not collectible. Other states have limits on rollovers or other protections that may apply and allow you to stop payment. A local lawyer can provide more information.
The Military Lending Act (MLA) is a Federal law that provides special protections for active duty servicemembers, like capping interest rates and fees on many loan products. The MLA prevents a servicemember from being charged an interest rate more than a 36 percent Military APR, which includes certain fees, on most types of consumer loans. The MLA applies to active-duty servicemembers, including those on active Guard or active Reserve duty, and covered dependents. Payday loans are covered under MLA.
Your debt is not discharged after you leave the country. Payday and other short-term debt do not go away. But you can manage debt by discontinuing automatic repayment and working out something you can afford. It is important to prioritize how you want to spend your money.
In the face of deportation, you can take steps to manage credit cards, prepaid cards, and debit cards. This section addresses these topics:
Before you begin, take a few moments to gather key documents and record important information about your cards. Keep this on your person or retain it in a secure electronic file, but do not share this information, including any passwords, PIN numbers, or other access information, with others. Write down:
A credit card gives the credit card holder access to a revolving line of credit. Buying something with a credit card or using a credit card to get cash is borrowing money against the line of credit. The credit card holder can borrow an amount up to the credit card limit. To keep the line of credit open, the credit card holder must make at least minimum monthly payments against any accrued debt. However, if you only make the minimum monthly payment, your credit card company will likely impose relatively large interest charges on any outstanding balances. Some credit cards also require you to pay other service charges and fees as well, including fees for making minimum monthly payments late.
You likely need a U.S. address to maintain your U.S. credit card; however, some credit card companies may allow you to open an account in the new country connected to your previous U.S. account. You should notify your credit card company of any change in address and check with the company for options. If the credit card has rewards, you should contact the credit card company to understand how best to redeem the rewards you have already earned. You may also want to stop any recurring payments being charged to the credit card if they no longer will apply.
You may be able to use your credit card outside the U.S. For certain types of credit cards, the credit card company may charge a foreign transaction fee to use a credit card outside the U.S. These fees may mount up. You should also be aware of the exchange rate used by the credit card company in processing the transaction. You should check with your credit card company for details.
What is Credit Card Debt?
Credit card debt is the total amount borrowed against the line of credit plus any accrued interest and other fees, including fees for late payments. In some cases, the accrued interest and fees may exceed the line of credit. You can minimize interest and other fees by paying off as much of your balance as possible every month on time.
Credit card debt exists regardless of where you live. The obligation to repay the debt does not disappear when a person leaves the country. If you miss a credit card payment, you will likely incur fees and penalties on your debt. Once the debt reaches a certain level without receiving payment, the credit card company may cancel your credit card and sell the debt to a debt collector. Debt collectors have a limited time during which they can sue debtors for nonpayment of credit card bills. Such time limits differ by state and are set by each state’s statute of limitations. The credit card company may also report missed or late payments to credit bureaus, such as Experian and TransUnion, which could have a negative effect on your credit rating in the U.S.
If you have some time before you must leave the United States, you should (1) contact each of your credit card companies, (2) tell each company about your situation, and (3) provide a forwarding address in your home country in a letter sent with a certified return receipt requested. Additionally, to the extent available, you should download the smartphone application associated with the credit card and enroll in electronic delivery and payment options. This reduces the chance that you will miss a credit card payment.
If you are a Detained Immigrant, you may not have enough time during the transition from one location to another to inform your credit card companies that you are leaving. This increases the risk that you will miss payments, which likely will result in fees and penalties on your debt. If you are subject to immediate removal from the United States, you should enroll in electronic delivery and payment options, and download the smartphone application of your credit card company that you can use to contact the company and make payments. Upon arriving in your home country, you should contact the credit card company and, if necessary, send in any payments that are owed or discuss other payment and debt relief options that the credit card company may offer.
If you don’t pay your credit card debt, you may incur late fees and accrue additional interest on the card each month, which could significantly increase the amount of your debt. Additionally, the credit card company may penalize you in other ways, including by increasing the interest rate on your credit card. The credit card company may also sell the debt to a debt collector for collection. Failure to pay credit card debt may also hurt your credit rating in the United States. Your credit rating probably won’t affect you in your home country, but it may complicate your finances if you ever return to the United States. For example, a lower credit rating or negative information on a credit report could affect your ability to obtain another credit card, receive a loan, purchase a car, or obtain housing.
Note that if you obtained a secured credit card by putting down money as a deposit for the credit card, you may also lose that money.
The debt collector may contact you to arrange payment of the debt. However, U.S. federal laws prevent debt collectors from engaging in certain tactics when attempting to collect debt, such as harassment or contacting you at an unusual time or place. You should be aware of your rights and of acceptable debt collection practices.
See, e.g., https://www.consumerfinance.gov/consumer-tools/debt-collection/ for more information.
International debt collection may be impractical for many debts, but your debt does not go away because you have relocated to another country. The debt collector may also sue you in state court to pay for the debt, which should not be ignored. While a person cannot go to jail solely for failing to pay credit card debt, failure to appear for court or to adhere to a court order could result in jail time.
A prepaid card is like a credit card that the cardholder pays in advance. Traditionally, the cardholder loads money onto the prepaid card, then spends that money to buy things or withdraw cash. These cards usually require a PIN number. In some cases, money can be loaded onto prepaid cards directly from a paycheck or bank account. The money normally can be recovered if the prepaid card is lost or stolen. Unlike credit cards, there are no interest payments, but there may be fees associated with setting up, loading, using, and maintaining prepaid cards. These fees may mount up.
Some prepaid cards can be used outside the U.S. Indeed, some prepaid cards are intended to be used outside the U.S. (e.g., by American tourists). You should check with your prepaid card company for information on whether or not your prepaid card can be used outside the U.S. and, if so, what fees and limitations apply.
You should check to see whether or not your prepaid card can be used in your destination country. If not, you should consider alternatives, including spending or withdrawing the money on the prepaid card prior to leaving the U.S. or the card expiring. You may also want to stop any recurring transfers to or from the prepaid card that are no longer applicable. You should also confirm whether there are any overdraft features turned on for the prepaid card and turn them off to avoid potential overdraft fees. If needed, you may contact the prepaid card company to check the amount left on your card or receive card statements.
You should generally monitor your prepaid account and card transactions on a periodic basis to make sure that your card is not being used to make fraudulent charges. You should contact the prepaid card company immediately if you identify any charges to your card that you did not make or authorize.
If the prepaid card is stolen or confiscated, you should immediately contact the prepaid card company to recover the funds on the prepaid cards.
A debit card is a payment card that is linked to a bank account. The cardholder puts money in the bank account, then spends that money to buy things or withdraw cash. In some cases, the cardholder can attempt to withdraw more than the amount in the bank account. These excess withdrawals or attempts to withdraw excess funds may be subject to overdraft or insufficient funds fees. These fees may mount up. Debit cards often require cardholders to create and use PIN numbers to use the card or withdraw funds from the bank account.
Some debit cards can be used outside the U.S. You should check with your bank for information on whether or not your debit card can be used outside the U.S. and, if so, what fees and limitations apply (e.g., foreign transaction and currency conversion fees). There may be additional fees for withdrawing cash using the debit card, including ATM and currency exchange fees.
Since a debit card is linked to a bank account in the U.S., you should decide whether or not to close the bank account associated with the debit card before leaving the country. If you close the bank account, then the debit card will no longer work and should be discarded. If you haven’t transferred the remaining balance to another bank account before closing it, the bank will generally send you a physical check with the amount of your balance to the address on file with the bank. You should make sure you can receive mail at the address on file before leaving the country, or otherwise should contact the bank to have the check mailed to a different location. If you keep the bank account, then you should check with your bank for information on whether or not your debit card can be used outside the U.S. and, if so, what fees and limitations apply.
If available, you should also download any smartphone applications associated with the debit card and enroll in electronic notification delivery options. You should generally monitor your bank account and debit card transactions on a periodic basis to make sure that your card is not being used to make fraudulent charges. You should contact the bank immediately if you identify any charges to your card that you did not make or authorize.
If the debit card has rewards, you should contact the bank to understand how best to redeem the rewards you have already earned. You may also want to stop any recurring payments being charged to the debit card if they no longer will apply.
If your debit card is stolen or confiscated, you should report the theft or loss to your bank as soon as possible.
Checklist: Credit Cards, Prepaid and Debit Cards
Card nickname | Last four digits on account | Type | Customer service phone number | Notes |
If you are being deported, you can sell your car, give it up, or take it with you. It depends on whether you own your car, lease your car or if you own your car and have a car loan. This section provides suggestions to address the following issues:
It depends on whether you own or lease your car. If you own your car, it also depends on whether or not you have a car loan.
If you own your car, you can sell it or export it. Exporting a car can be complicated, so it may be simpler to sell your car in the U.S. and buy a new car in your destination country. Please see below for more information about selling or exporting your car.
If you have a car loan, you should start by reviewing your loan documents. Depending on what they say, you may be able to:
Please see below for more information on selling or exporting your car.
If you lease your car, you should start by reviewing your lease. Depending on what it says, you may be able to:
If another person is obligated on the lease, you should tell that person about your situation.
See online websites or other resources for more information on ending your lease early. While we do not endorse particular businesses, we believe it is important to point immigrants who may not have made similar transactions to examples of services. Some examples are:
If you have a car loan, you can surrender your car to your lender. Check your loan documents for details. You may be able to negotiate any fees for defaulting on your car loan if you explain your situation to the lender.
If you lease your car, you can return your car to the leasing company. Check your lease agreement for details, especially because there may be a penalty for ending your lease early. You may be able to negotiate this penalty if you explain your situation to the leasing company.
Before selling your car, find out how much your car is worth using the Kelley Blue Book (http://www.kbb.com) or another resource. Decide the lowest price that you would accept for your car.
If you still owe money on the car, compare the value of your car to the amount left on your loan. If your car is worth more than the loan and you have enough money to pay off the loan, you can pay off the loan, then sell your car. If you do not have enough money to pay off the car loan before finding a buyer, you can use the buyer’s payment to pay off the loan and keep the difference as profit. You will have to get permission from your lender(s) to make the sale in order to transfer clear title to the buyer. If the car is worth less than the loan, consider surrendering the car to the lender instead of selling it.
You can sell your car to another person using online or paper classified advertisements or word-of-mouth. You can also sell your car to the original dealer or another certified dealer who sells or leases the type of car you currently have. You may also sell your vehicle to a used-car dealership. In some cases, choosing to work with an experienced dealer can be easier.
Before allowing a potential buyer to test drive the car, make sure that your insurance policy covers test drives.
Put the sale terms in writing and get the payment from the buyer in cash or a certified check to limit the chances of fraud before giving the keys or transferring the title to the buyer.
File the necessary forms for transferring title and for sales tax purposes.
If you don’t have time to sell your car before you leave, you could give a limited Power of Attorney (POA) to a trusted friend and ask the friend to sell the car for you. You will have to give your friend the signed vehicle title to give to a buyer.
See these websites for more information on selling your car:
If you sell or surrender your car, you will need to cancel your car insurance and registration and take your license plates to the Department of Motor Vehicles. You may have to take the registration sticker and inspection sticker off the car too.
To export your car, you have to meet exportation requirements in the United States and importation requirements in your destination country.
If you want to export your car, you’ll have to hire a U.S. agent (a Freight Forwarder, Broker, etc.) to file export information with U.S. Customs on your behalf. This information includes the original Certificate of Title for your car or a Certified Copy of the Certificate of Title and two complete copies of the original Certificate of Title or the Certified Copy. Your agent will have to file this information at least three days before you plan to export your car.
If the title to your car shows that there is a lien on your car, you will have to show that the lien has been removed or provide a signed and dated writing from the lienholder (on their letterhead) which states (i) that the car may be exported, (ii) the contact information of the lienholder, and (iii) the Vehicle Identification Number (VIN). A lien is a legal document that permits the lender to repossess your car if you fail to make payments.
See online websites or other resources for more information on exporting your car. While we do not endorse particular businesses or services, we believe it is important to point immigrants who may not have made similar transactions to sources of information. Some examples are:
Importing a car to Mexico is relatively complicated. The requirements depend on your car’s age and Vehicle Identification Number (VIN). Consider hiring a Mexican Customs Broker Agency to import your car for you.
See online websites or other resources for more information on importing your car to Mexico. While we do not endorse particular businesses or services, we believe it is important to point immigrants who may not have made similar transactions to sources of information. Some examples are:
This chapter will help you (i) get your short-term service contracts and related bills in order and (ii) decide whether and how to terminate these contracts.
Common examples of the many different kinds of short-term service contracts are listed below to help you identify contracts you may have.
First, collect the information in one place. As you collect contracts and bills, remember, if you do not understand something, ask someone for help or contact the provider with questions (and/or to see if they can provide the contract in your preferred language). When contacting the provider, its recommended to start with their website, then use email/chat, and as needed/available, call them by phone or go to the store. Be sure to save emails and notes. Consider sharing the information with a trusted person in the U.S. who may be able to help you after you leave.
If “yes,” coordinate with the provider to ensure coverage is transferred under the contract.
Note: this likely only applies to some services such as phone and internet plans.
If “yes,” (i) talk to the person you want to add; (ii) ensure they understand and consent; (iii) provide them the relevant documents and information discussed above under “Compile Your Contracts;” and (iv) provide them specific (and ideally written) instructions about how/when to access the account and assist in your absence. Follow the instructions in the contract to add another person.
If “no,” or unclear, contact the provider.
Note: don’t forget to evaluate the potential liability of adding another person.
If “yes,” see if there is an early termination fee and specific information on how to terminate. Add the information to your list.
If “no” or unclear, contact the provider. See below for additional information.
Most service contracts will include information about termination. This is often found in a section “Terms of Service,” or “Termination,” or “Cancellation.” If you cannot find the termination section or the language is unclear, contact the provider.
Each contract is different. Often you can terminate through your online account, but sometimes you have to appear in person or call customer service. Sometimes there is a termination fee, or a deposit refund, or other considerations. Check each contract to determine the process and considerations.
When time is limited, contact providers to determine if you can add another person who can help manage your account. If “yes,” try to do so right away.
If you are not able to add another person to manage the account and there is insufficient time, you should contact the provider and give your new contact information.
Sample Verizon Mobile Customer Agreement. A sample Verizon Mobile Customer Agreement allows users to terminate/cancel service through their online account. The sample below also explains possible results of termination, based on factors such as how soon after accepting the agreement the user terminates, if the user returns certain equipment on time, and the type of payment plan. The termination provision from a sample Verizon agreement:
“You can cancel a line of Service within 30 days of accepting this Agreement as long as you return, within the applicable return period, any equipment you purchased from us or one of our authorized retailers in connection with your acceptance of this Agreement, but you’ll still have to pay for your Service through that date. If you financed your device with Verizon and cancel your Service(s) after 30 days, your outstanding balance may immediately become due. Canceling service may also impact promotions associated with that line(s). You may manage your Service at any time at Verizon.com. If you signed up for Prepaid Service, no refunds will be granted after 30 days or if your account has been activated. See verizon.com/support/return-policy/ for complete details and information on returning your equipment.”
The sample Verizon agreement also includes a separate section about transferring the agreement or service to another person:
“Can I have someone else manage all or a portion of my [. . .] account?
No problem – just tell us by phone, in person, or in writing . . .”
Each contract has its own terms but generally you will continue to be responsible for the contract and unpaid amounts. There may also be additional fees and charges for unpaid bills. Depending on the state and provider, sometimes the provider can suspend service (but you may still be responsible to pay). Many of these contracts automatically renew unless terminated. Some switch to month-to-month arrangements. Be sure to review each contract.
United States consumer protection law protects individuals who send remittance transfers from the United States to recipients in another country. This section discusses the details and applicability of these protections. This section answers the following questions:
A remittance is money sent by an individual in the United States to recipients abroad.
An individual who sends a remittance of $15 or more is protected by certain federal disclosure requirements imposed on most businesses that provide the remittance transfer service.
Not all businesses that provide remittance transfer services are covered by the law. Only companies that provide more than 500 remittance transfers per year (“remittance transfer providers”) are required to comply with the law. Remittance transfer providers generally include money transmitter companies (such as Western Union), banks and credit unions, and many other types of financial services companies.
Remittance transfer providers that send remittances on behalf of customers are required to be regulated entities, either because they are banking organizations, or they are nonbank businesses that have state licenses as “money transmitters.” Almost all states now license and regulate non bank money transmitters. For your protection, you should use only a regulated bank or a licensed money transmitter to send your remittance. In either case, you should research the remittance transfer provider before you send any money using them.
Under federal law, remittance transfer providers are required to provide clear and readily understandable written disclosures of certain information concerning your remittance transfer.
Before you pay to send a remittance, the remittance transfer provider must disclose to you the following information:
Remittance transfer providers must also provide the following information after you pay to send the remittance:
In some cases, the remittance transfer provider may provide the above information in a single, combined disclosure. If they do so, all of the information must be provided to you before you agree to make the transfer, and the remittance transfer provider must also give you proof when the payment is made to the person you are sending the money to.
After paying for a remittance, you have 30 minutes to cancel the transaction at no charge so long as your request has enough information so the remittance transfer provider can identify the transaction you want to cancel, and so long as the person to whom you sent the money hasn’t received it yet.
After the request to cancel the transfer, the remittance transfer provider has three business days to refund your remittance and any fees or taxes if allowed by law.
Federal rules also protect you if the remittance transfer provider makes a mistake. Examples of mistakes include payment of the wrong amount, failure to deliver funds on time or to the right person, and failure to deliver the funds at all.
If you think there was a mistake or error with your remittance transfer, you should immediately contact the remittance transfer provider. You have 180 days from the date the money was supposed to be available to the person to whom you sent the money to notify the provider of the error. The remittance transfer provider then has 90 days from the date of your complaint to investigate your concern and determine if an error did in fact occur. If the remittance transfer provider investigates and determines an error has not occurred, the provider must tell you why.
If the remittance transfer provider determines that a certain type of error did occur, then the remittance transfer provider must either refund your money or re-send the remittance. If you do not receive a satisfactory response from the provider, you can submit a complaint to the United States’ Consumer Financial Protection Bureau (CFPB). Complaints may be submitted online at:
https://www.consumerfinance.gov/complaint/.
Ensure that you avoid common scams and fraud
Phishing Scams: Scammers will pose as legitimate companies or government agencies and request that you send them funds.
Fake Emergency Requests: Fraudsters may impersonate your family members and ask for urgent help.
Minimizing Fees and Costs
Avoid Hidden Costs: Before you send a transfer, ask the remittance transfer provider if there are any additional fees, like cash pick-up charges. (Although, these should be disclosed up front).
Additional Tips for Safe and Informed Use
Double-Check Recipient Details: Errors in recipient names or account numbers can delay or cancel the transfer.
Understand Refund Policies: Ask about any refund options beyond those required by federal law before sending money.
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