WASHINGTON—The Consumer Financial Protection Bureau is finalizing a policy it said is designed to empower consumers to voice publicly their complaints about consumer financial products and services.
When consumers submit a complaint to the CFPB, they now have the option to share their account of what happened in the CFPB’s public-facing Consumer Complaint Database, the agency said, adding it is also publishing a Request for Information seeking public input on ways to highlight positive consumer experiences, such as by receiving consumer compliments.
“Consumer narratives shed light on the full consumer perspective behind a complaint,” said CFPB Director Richard Cordray in a statement. “Narratives humanize the problems consumers face in the marketplace. Today’s policy will serve to empower consumers by helping them make informed decisions and helping track trends in the consumer financial market.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, established the handling of consumer complaints as an integral part of the CFPB’s work. The CFPB began accepting complaints when it was created in July 2011. It currently accepts complaints on many consumer financial products, including credit cards, mortgages, bank accounts, private student loans, vehicle and other consumer loans, credit reporting, money transfers, debt collection, and payday loans. As of March 1, 2015, the CFPB said it has handled 558,800 complaints, with mortgages and debt collection being the most frequent topics.
In June 2012, the CFPB launched its Consumer Complaint Database, which is the nation’s largest public collection of consumer financial complaints. It includes basic, anonymous, individual-level information about the complaints received, including the date of submission, the consumer’s zip code, the relevant company, the product type, the issue the consumer is complaining about, and how the company handled the complaint.
In July 2014, the CFPB proposed a policy that would allow consumers to publicly share their stories when they submit complaints to the Bureau. Today, the Bureau said it is finalizing its consumer narrative policy after receiving and considering comments from consumer groups, trade associations, companies, and individuals.
“Consumer narratives provide a first-hand account of the consumer’s experience, and adding the option to share them will greatly enhance the utility of the database,” the CFPB said. “The narratives will provide context to complaints, spotlight specific trends, and help consumers make informed decisions. The narratives may encourage companies to improve the overall quality of their products and services, and more vigorously compete over good customer service.”