WASHINGTON–Both NAFCU and CUNA are objecting to an announcement by the Consumer Financial Protection Bureau (CFPB) that it will now make public complaints by consumers against financial companies.
As CUToday.info reported here the CFPB explained that consumers will now have the option to share their account of what happened in the CFPB’s public-facing Consumer Complaint Database. The CFPB added it is also publishing a Request for Information seeking public input on ways to highlight positive consumer experiences, such as by receiving consumer compliments.
The CFPB said that under its system, companies will be given the option to select from a set list of structured response options as a public-facing response to address the consumer complaints. Companies will have 180 days after the consumer complaint is routed to them to select the optional, public response. Companies will have the option to address all consumer complaints submitted after this policy announcement, not just those where a consumer consented to publication.
NAFCU’s Director of Regulatory Affairs, Alicia Nealon, said that “Credit unions already take great care in resolving their members’ complaints directly. NAFCU, however, is concerned that this new policy may allow unsubstantiated information into the complaint resolution process. “We believe such incomplete and unsubstantiated information will not only create an inaccurate picture of an institution, but it will also make the complaint process more complicated and confusing for consumers and institutions.”
In its analysis, CUNA said that the “complaint database could feature false, exaggerated or inaccurate information,” and that “financial institutions could face severe reputational harm by potentially inaccurate information.”