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What Does the Dodd-Frank Rollback Mean for You?

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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It’s been a year since Congress adjusted parts of the Dodd-Frank Act financial reform package, which was originally implemented in 2010 to address the financial industry excesses that helped cause the financial crisis of 2008.

The Dodd-Frank rollback was a bipartisan effort designed to make life easier for smaller banks, and also extend certain consumer protections. However, the effort drew negative attention from those who argued that dialing back some bank oversight could possibly contribute to another financial crisis.

So what happened with the Dodd-Frank rollback, anyway? In this article, we’ve rounded up what parts of Dodd-Frank changed, what stayed the same and what it all means for your banking and personal finances.

Why was the Dodd-Frank reform enacted in the first place?

The Obama administration proposed the Dodd-Frank reform bill in response to the financial crash of 2008, which set off the worst economic downturn since the Great Recession. Congress passed the bill in 2010.

The Dodd-Frank Act spans 2,300 pages and directs federal regulators to enforce more than 400 new rules and mandates. According to David Reiling, CEO of Sunrise Banks, “It imposed particular attention on the mortgage lending industry which was considered the main trigger for the Great Recession of 2008.”

Some of the rules under Dodd-Frank include:

  • New disclosure requirements for mortgage loans, so consumers could better understand what they are applying for.
  • More oversight over banks to make sure they have enough cash reserves.
  • The launch of new regulatory agencies for the banking, credit rating and insurance sectors.
  • The creation of the Consumer Financial Protection Bureau, a new government agency focused on helping consumers with money issues.

For more on the specifics of the original Dodd-Frank bill, check out part one of this series here.

What changed with the Dodd-Frank rollback?

Under the original terms of Dodd-Frank, banks faced greater regulation and oversight from the Federal Reserve when they held $50 billion or more in assets. Supporters of the Dodd-Frank rollback thought that this threshold was too low and created an excessive regulatory burden for smaller regional and community banks that don’t have the same resources as the big banks.

After the rollback, the cutoff for mandatory extra regulation was pushed up to $250 billion in assets. In addition, regulators were given the discretion to require stress tests and extra regulations for banks with between $100 to $250 billion in assets, provided the regulators think it’s appropriate.

Brandon Renfro, assistant professor of finance at East Texas Baptist University, is supportive of the rollback overall. “Bigger players are better able to handle the regulations, due to economies of scale, while the Dodd-Frank rollback will give smaller organizations slack and flexibility to operate.”

How could the Dodd-Frank rollback impact your banking?

The Dodd-Frank rollback set to reduce regulations and improve profits for smaller banks. Since these banks no longer need to go through the same strict compliance rules and stress testing, they should be able to earn more. Supporters of the rollback believed that small banks could pass these savings on to consumers, by paying higher interest rates on products like CDs and charging less for loans.

The Dodd-Frank rollback also loosened the requirements small banks face for setting up a mortgage loan. Small banks no longer need to follow the Dodd-Frank data reporting requirement meant to help detect predatory and discriminatory lending. This makes it slightly easier for these small banks to offer mortgages.

Finally, the rollback added a new protection for small lenders offering mortgages (those with less than $10 billion in assets). “One of the changes of the rollback was to allow certain small creditors additional safe harbors when determining a consumer’s ability to repay a mortgage loan,” said Reiling. “By providing additional protection to these institutions who have historically always verified a consumer’s repayment ability, this may translate to easier access to credit for consumers seeking loans at these institutions.”

Overall, the intent of the Dodd-Frank rollback is to make it easier for small banks to operate with the goal that this will improve banking and borrowing for consumers. However, this is just an inclination as there are no specific rules in the bill requiring these banks to offer better rates for their customers.

Free credit freezes, extended credit fraud protections

Beyond changes for banking, the Dodd-Frank rollback also created new benefits for consumer credit reports. First, consumers can now request a free credit report freeze from the credit bureaus — Equifax, Experian and TransUnion. A credit freeze locks up your report so new loans and lines of credit can’t be opened under your name — a good safeguard if you’re worried someone stole your identity.

Before the rollback, you had to pay up to $10 per credit bureau to get this protection in place. Now, this service is free for any credit user who wants it.

The Dodd-Frank rollback also extended the length of a short-term fraud alert on your credit report. It’s now one year, up from 90 days. When your report has a fraud alert, the bureaus must take extra steps to verify your identity before issuing new credit, like by calling you first.

It’s not as strict as a credit freeze so you can still set up accounts yourself, but adds extra protection against identity theft. Before the rollback, you would need to reapply for a new short-term fraud alert every 90 days, but now it lasts a full year.

Could the Dodd-Frank rollback fuel a financial crisis?

It took years for the country to recover from the last financial crisis and it’s understandable to be concerned about any legislation that might make another one more likely. While the Dodd-Frank rollback does loosen some of the measure’s original rules, it retains the majority of the original protections: the new regulatory agencies, the Federal oversight of large banks, the new disclosures for mortgages, among many others.

“Could the rollback increase the chances of a financial crisis? Yes, but only by some marginal degree,” said Renfro. “The key thing of the rollback is that it limits the regulations on the small banks, who were not key contributors to the financial crisis. The large banks are still constrained by the rules of Dodd-Frank so I’m not too concerned about the change.”

The final word on the Dodd-Frank rollback

Passing new legislation is always a balancing act, and the government decided that the extra potential growth and consumer benefits justified removing some of the Dodd-Frank’s rules. The main framework of the measure’s protections remains in place, while small banks and community banks get some regulatory relief. That seems like a fair trade-off, but only time will tell whether this is the right move.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

David Rodeck
David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here

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Banking

How to Send Money to Mexico

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

If you have family or friends in Mexico, you’ll find that the process of sending them money from the United States is easier and cheaper than ever before. There is a plethora of services today that offer a variety of options for getting your hard-earned dollars converted to pesos and sent south of the border.

Have you been using the same service to send funds for ages? Time to figure out if you can find a better deal. We’ve looked at a range of different international money transfer companies, and tallied their options and the fees involved to send money to Mexico.

How to send money internationally

Not very long ago, there was really only one way to send money to Mexico from the United States. You’d visit a bricks-and-mortar transfer agent and send the money in person. Online remittance services have challenged the traditional money transfer agencies that maintain lots of physical outlets.

Whether you stick with the agency down the block or go online, you’ve got options for how the recipient can get their funds, via bank transfer or cash pickup. The sender can send money via cash, bank transfer, debit card or credit card.

Dan Canning, U.S. managing director at WorldRemit, cautions consumers to use a reputable money transfer service, especially ones that require you to verify your information and so you can minimize the risk of fraud.

“Online money transfer operators can mitigate some of the risks and issues involved with cash-based remittances because they are able to use advanced technology to validate customer identities and ensure the integrity of their customers’ personal information,” he said.

“The electronic footprint generated by online transfers can also act as a strong deterrent to criminal groups who seek to victimize consumers through fraud scams.”

Compare services to send money to Mexico

We’ve looked at the services of seven competing international money transfer companies to give you a feel for the competitive landscape.

Company

Cost to send $100 to Mexico

Time it takes to get to recipient

MoneyGram

At a physical office: $9.99
Online bank transfer: $1.73
Credit or debit card online: $1.99

Bank transfer: 3-4 business days
Credit/Debit card: within minutes
Cash: within minutes

Remitly

Bank transfer: $3.99
Debit card: $3.99

Bank transfer: 3-5 business days
Debit card: Within minutes

Ria

Bank transfer: $1
Debit Card: $2
Credit Card: $4
Cash: $9

Up to 4 business days

TransferWise

$2.64

1 business day

Western Union

Online to recipient’s bank account: $4.99
Online, if recipient picks up cash
Credit card: $8.50
Sending via physical branch: $4
Via bank transfer: $2.99

Anywhere from within minutes up to 5 business days, depending on how you send funds

WorldRemit

Via bank transfer: $2.99
Cash pickup: $1.99 to $4.99, depending on location

Within the same business day

Xoom

$4.99

15 minutes or less

Send money to Mexico with MoneyGram

MoneyGram MoneyGram offers a quick service feature that lets you send money within minutes for cash pickup. The company also allows you send money online once you register for a free account, or you can stop by any one of their 350,000 locations worldwide.

Beware that MoneyGram has some of the more costly options for sending money abroad, but you can minimize your costs by using a bank transfer and sending money to your recipient’s bank account. However, this low-cost option means it could take from three to four business days for funds to arrive in Mexico.

Send money to Mexico with Remitly

Remitly Remitly lets you send money via bank transfer — what it calls the economy option — or debit card — what it calls the express option. To initiate a transfer, you’ll need to register for an account online, though you’re limited to sending up to $30,000 within the first 24 hours after account registration depending on what personal information you provide. The recipient can pick up their cash at over 15,000 participating locations.

The express option gets your money to Mexico in minutes, while the economy option means your funds will arrive within three to five business days. Remitly offers a money-back guarantee if your funds don’t arrive on time.

Send money to Mexico with Ria

Ria Ria allows you to send money at any one of their 369,000 branches worldwide or online. It has partnered with the PayNearMe app where you can initiate a transfer online, then head to the nearest participating 7-Eleven to drop off the cash.

To send money, stop off at any one of their branches or create an online account. Once you verify your personal information, select how you want to pay — bank transfer, debit or credit card — and how you want the recipient to receive their funds, whether it’s through bank deposit or cash pickup.

The cheapest option is to send it money to your recipient’s bank account via a bank transfer online. You can’t send more than $2,999.99 per day, or $999.99 for Arizona and Oklahoma residents. It’ll also take up to four business days, assuming Ria doesn’t require additional safety checks.

Send money to Mexico with TransferWise

TransferWise TransferWise offers a variety of payment options — ACH transfer, bank transfer, debit or credit card payment — but the recipient will need a bank account to receive funds. Transferwise offers customers currency exchange using the mid-market rate — there are no markups and it’s based on the “real” exchange rate, like the ones you find on websites like XE.com.

To send money to Mexico, you’ll need to start off by opening an account with Transferwise and complete the verification process. Once complete, you can initiate a transfer by logging into your account and indicating how much money you want to send and the transfer method.

Transferwise lets you send up to $10,000 every 24 hours per order using ACH transfer and up to $50,000 with other methods. As soon as Transferwise receives your funds, it claims it’ll arrive in your recipient’s account within one business day.

Send money to Mexico with Western Union

Western Union As one of the largest money transfer companies in the world, Western Union offers a myriad of options to send and receive money. You can show up at any one of their 42,000 branches in the U.S., online or via their mobile app, and pay via bank transfer, cash or even Apple Pay.

Once you register for a free account online, you can select where you want to send money, the payment method and how you want the recipient to receive their funds. The cheapest option is via bank transfer and have the recipient pick up cash at a Western Union location, which can take up to four business days to arrive.

Send money to Mexico with WorldRemit

WorldRemit Launched in 2010, WorldRemit allows users to send money online or via a mobile device. You can send money in a variety of ways, including bank transfer, with a credit or debit card or via Apple Pay. Your recipient can do a cash pickup at a participating location — some locations will have higher fees than others — or receive the funds in their bank account.

You’ll need to open an online account with WorldRemit and verify your identity using an official ID. Once complete, you then select how you want to pay for the transfer and delivery method. The cheapest option is cash pickup at certain locations, and the money should be available instantly.

Send money to Mexico with Xoom

Xoom Xoom is owned by Paypal, which means you can use your Paypal account to send cash, but you can only use a linked bank account, credit card or debit card to send funds. The recipient can pick up the cash at over 35,000 participating locations or have the money sent to their bank account.

To send money, you’ll need to register for an account with Xoom. Once you provide all required documentation, you can transfer up to $50,000 every 24 hours or up to $60,000 each month. If you want to send more than $10,000, it could delay processing times — up to two to three business days on top of normal processing times even for the cheapest option.

Shop around for your best rate

When comparing money transfers services, you’ll want to see how much it’ll cost you in fees and approximate time of arrival. Money remittance services make money through fees and markups in their currency exchange rates. However, exchange rates are constantly in flux, which means that if you find a low-cost option today, doesn’t mean it’ll be true within a few days.

“Exchange rate fluctuations are caused by supply and demand changes in the FX market, which are in turn, affected by a variety of financial and economic factors,” Canning said.

Money transfer services make use of exchange rates to help you transfer money. Even if you find a good rate, it could go up within hours, meaning that $100 you send to your aunt in Mexico is no longer worth as much as it was before.

Canning also mentions that remittance services can guarantee a certain currency exchange rate with a specified amount of time. Places like WorldRemit can choose to receive email or text alerts of currency exchange rates to find optimal times to send money. If possible, sign up for these alerts so you can try to get a more favorable rate.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

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Western Union Money Transfer Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Western Union has been a consistent leader in the money transfer business. The company has come a long way from its founding in 1851, when it was begun as a telegram service. The first Western Union money transfer wasn’t introduced until twenty years later in 1871. In 2000, the company entered the digital age, offering online money transfers to its customers. It added on its Mobile Money Transfer Service seven years later, further expanding into the digital payments space.

Today, Western Union operates in over 200 countries and territories. In 2018, it moved more than $300 billion in principal globally, handling transactions in 130 currencies.

Although you can’t send a Western Union telegram anymore — the last one was sent back in 2006 — you can take advantage of its wide range of financial services. Let’s take a look at the ways you can send and receive money through Western Union.

Western Union key features

  • Flexible transfer limits: Your transfer limits depend on factors that include your location, the recipient’s location and payment method. Limits are variable based on the service you choose and agent location.
  • Multiple payment options: When sending money online, you can choose to make your payment through a debit card, credit card, bank account or wire transfer. You can also indicate whether your recipient wants to receive cash or a bank account transfer. If your recipient wants to receive cash, you can also initiate a transaction online and visit your nearest Western Union location to make the payment.
  • Widespread global access: If you need to visit a physical location, there are over 550,000 agent locations in more than 200 countries and territories.
  • Track your transfers: Whether you’re the sender or the recipient, you can track your transfer both on the website and WU app.
  • Online bill pay: Western Union allows you to pay thousands of billers so you can easily make payments for your mortgage, utilities, credit cards and more, in one place. This service is available online, in the app, over the phone and at WU locations.
  • Western Union app: Available on both Android and Apple products, the WU app allows you to send money and keep track of your transfers anywhere and at any time.
  • Western Union membership program: My WU® is a membership rewards program that earns points on the fees you pay to send money. You can redeem the points for service discounts and other rewards.

Sending a money transfer with Western Union

Anyone can send and receive money with Western Union, as long as you’re at least 18 years old. You must also have your recipient’s information ready to make a transfer, including their name as it appears on their government-issued ID, street address and, if applicable, bank account information.

  • How long does a transfer take? Some transfers take only a few minutes. This includes Mobile Money Transfer and the Money in Minutes service for pickup at a location. Other transfer methods like Next Day service, Direct to Bank and Bill Payment can take one to five business days.
  • Where can you send money? You can send money to recipients in over 200 countries and territories.
  • How much can you send? Your transfer limit depends on a few factors, namely your recipient’s location and method of transfer. For example, if you’re in the U.S. and want to send money to someone in the U.S., you’re allowed up to $5,000 USD per online or app transaction. If you want to send money to someone in the Philippines, your limit increases to $19,000 USD.

Send money online with Western Union

To send money online or with the WU app, you’ll need to have a Western Union account. You can easily create one when you make your first transfer, with your name, date of birth, email and residential address. Creating an account allows you to save payment methods and recipients for further ease in the future.

Once you’re ready to send money online, you can select the destination and enter the amount and currency of your transfer. Then you choose whether your recipient will get the money through a cash pickup, bank transfer or a Mobile Money Transfer. Next, select how you would like to pay, whether by credit or debit card, bank account or with cash at a WU location. Note that you cannot pay in store if you’re sending money to a recipient’s bank account.

Send money in person at a Western Union location

You can visit a Western Union office to send money with cash or a debit card, where accepted. Western Union also allows you to start a money transfer online or on your app, then pay in cash at a location.

Send money over the phone with Western Union

If you’re sending money from the U.S. to a recipient in the U.S., you also have the option of making a transfer by calling the Telephone Money Transfer hotline at 1-800-CALL-CASH.

Western Union fees and fine print

Your fees will vary according to your payment selections, like whether you’re sending money with cash or through a bank account, or whether your recipient is collecting cash or getting a bank transfer. The amount transferred will also determine the fees charged; generally, the higher the amount, the higher the fees. Western Union has a price estimator to help you figure out the cost of your money transfer before you commit.

Let’s take a look at the different fees you could pay if you were sending $400 from the U.S. to a recipient in the U.S., depending on how your recipient is receiving the money — cash pickup or bank account transfer — and your method of payment — debit card, credit card or bank account.

 

Debit card

Credit card

Bank account

Pay in store

Cash pickup

$54.99

$66.99

$11

$5

Bank account

$15

$17

$0.99

N/A

Note that while you can use a credit card to send money, your credit card issuer will consider this a cash advance. Cash advances typically trigger an extra fee on your credit card and a higher interest rate. They also tend to begin accruing interest immediately, rather than waiting for the next pay period.

Is Western Union a good money transfer service to use?

Pros:

Cons:

  • Widespread access: Western Union has over 550,000 agent locations in more than 200 countries and territories.
  • Flexible payment options: You can send money in the most convenient way for you from bank transfers to in-person cash payments.
  • Flexible delivery options: You can also receive money in a few different ways with Western Union, whether you want to pick up cash or receive a mobile wallet transfer.
  • Variety of products and services: Western Union isn’t only good for money transfers. You can also use it for money orders and bill payment services, and they offer a prepaid debit card.
  • Potentially high fees: Sending money to wealthier nations will cost more in fees.
  • Lacking customer service: Many reviews of Western Union have indicated some room for improvement in its customer service.
  • Hectic website: If you just need to send money, pay a bill, track a transfer or pick up cash, you can easily find buttons for those functions at the top of the site. However, if you’re looking for further information, you’ll find it a bit more difficult to navigate.

Western Union money orders and other services

In addition to its vast money transfer capabilities, Western Union also offers some other handy financial services.

  • Money orders: Money orders are alternatives to checks or cold cash. You can get a money order at any Western Union location in Canada or the U.S.
  • Prepaid debit card: The Western Union® Netspend® Prepaid Mastercard® allows you to store and spend your money without needing a checking account. There’s no credit check either, so you can open a card even with bad credit or banking history. You can access the card online and on the WU app to make transfers, deposit checks and pay your bills. The card even earns cash back and offers the chance to get your paycheck up to two days early with direct deposit.When you open the card, it’s automatically enrolled in the Pay-As-You-Go Plan, which charges $1 per signature purchase and $2 per PIN purchase in lieu of a static monthly fee. You can switch to either a Monthly Plan or Reduced Monthly Plan, however, which cost $9.95 and $5 per month, respectively, instead of per transaction.
  • Bill payments: Western Union allows you to pay your bills, including mortgage, auto, credit card, insurance, utility and government payments, as long as the biller is a participating entity. You can pay your bills on WU.com, on the WU app, in person and over the phone with Telephone Money Transfer. No matter how you pay, you’ll need the biller’s name, account number and amount.Paying your bills through Western Union will cost a fee, depending on how much you send and the company to which you’re sending.

Alternative money transfer options

MoneyGram and TransferWise are international money transfer companies providing similar services to Western Union.

TransferWise

TransferWise commits to keeping fees and exchange rates low, charging only what it costs to send the transfer itself. It’s also transparent about the fees it does charge when you enter your payment amount, recipient country and origin country in its pricing calculator. On the whole, the more money you send, the higher the fees will be, since TransferWise charges a percentage of the amount you’re sending, unless you send a small amount of money, which will cost a small set fee.

  • How long does a transfer take? Transfers can take as long as a few minutes to a few days. It will depend on your method of payment, the country you’re sending to and from and other factors. TransferWise’s tool can also give you an estimation of when your payment should arrive.
  • Where can you send money? You can send money between Africa, the Americas, Asia and Europe. Note that TransferWise is entirely digital; you cannot visit a location to send money with cash or checks.
  • How much can you send? You can send a maximum of $50,000 per day and $250,000 per year.

MoneyGram

If you still need access to a physical location, MoneyGram can be a good alternative. It has thousands of locations and reaches just about as many as countries and territories as Western Union so you can send or pick up money just about anywhere. The exact fees for sending money via MoneyGram depend on how much you’re sending and the method of sending. You can use MoneyGram’s Estimate Fees tool so you can determine the true cost of sending money before you make the transaction.

  • How long does a transfer take? If you’re sending money to be picked up as cash, the funds can usually be picked up within minutes, subject to location hours, destination country and availability. If you’re sending money to a bank account, it can take as little as an hour to the next day, depending on a few factors, including the country you’re sending to.
  • Where can you send money? MoneyGram maintains over 350,000 locations in over 200 countries and territories. There are over 30,000 locations in the U.S. and you can often send money at convenient locations like CVS Pharmacy or Walmart. You can also send money online and through the MoneyGram app.
  • How much can you send? You can typically send up to $10,000 per online transfer and up to $10,000 every 30 calendar days.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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