CFPB Unveils Complaint Database; Soon to Include Mortgages

The Consumer Finance Protection Bureau (CFPB)rnrolled out another new consumer tool this morning, an on-line complaintrndatabase.  The database, currently inrnbeta format, provides loan-level information on complaints logged with thernBureau by customers. The database is currently limited to complaints regardingrncredit cards but the Bureau intends to expand it to include mortgages, payday loans,rnand other consumer financial products.</p

There is no information that in any way identifiesrnthe consumer, but the company issuing the card is identified as well as therntype of complaint (billing dispute, interest rate, collection practices, etc).  Other information includes the steps taken inrnresolving the complaint, tracking dates and the current status of therncomplaint. The accessibility of the information will allow consumers to track theirrncomplaints (with an identifying number) and permit the public to judge thernactions of the bureau as well as assess the manner in which companies handlernand resolve disputes.  </p

Credit card companies are expected tornrespond to consumer complaints within 15 days and to resolve all but the mostrncomplicated issues within 60 days.  Therndatabase indicates whether the dispute has been handled in a “timely” mannerrnand whether the customer has accepted the card company’s action. </p

The beta version of the site containsrninformation only on complaints received after June 1 however the Bureau intendsrnto backfill information once the full version of the program is on-line.</p

CFPB’s website said, “No longer willrnconsumer complaints only be known to the individual complainant, bank,rnregulator, and those in the public willing to pursue this information throughrnthe Freedom of Information Act. Instead this data-rich window into consumerrnfinancial issues will be widely available to everyone: developers,rnpolicymakers, journalists, academics, industry, and you. Our goal is to improvernthe transparency and efficiency of the credit card market to further empowerrnAmerican consumers.”</p

ABA’s Response:</p<pKenneth Clayton, ABA’s executive vice president of legislative affairs and chief counsel</p<div class="aba-field"

“While our industry stands ready to work with the CFPB to resolve customer concerns, the Bureau’s plan to release unverified data is disappointing and could mislead consumers.  Publishing allegations isrn often different than publishing facts.  The Bureau itself acknowledges the complaints could be inaccurate, and in fact plans to disclaim their accuracy.*  This makes the proposed database a questionable – even misleading – resource and risks tarnishing the reputation of individual companies without substantiation.rn

“Complaint resolutions are best handled in a fair and unbiased manner between the parties involved.  Where regulators believe process problems exist, theyrn have ample authority to correct them.  Publicizing allegations that mayrn or may not have any basis in fact raises serious questions about the balanced review we expect from our government agencies.  It feeds the perception that the Bureau wishes to politicize the process rather than analyze the facts involved.

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“The banking industry takes every complaint seriously andrn works every day to resolve customer issues.  We’re proud of the customer service we provide and the numbers speak for themselves.  Of the more than 383 million credit card accounts in the U.S., less than one-hundredth of one percent have submitted a complaint to the Bureau.  Customer satisfaction will always be our industry’s top priority.”
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Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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