While banks have argued unverified details may be included, they will have 60 calendar days to respond to a narrative complaint before the story is published, 15 days to respond to a brief complaint before it is included in the online database. In a press release, CFPB Director Richard Cordray said, “Today’s policy will serve to empower consumers by helping them make informed decisions and helping track trends in the consumer financial market.”
The agency also offered the companies 90 days after the final policy is included in the Federal Register so they can better adjust to the system. Customers have to ‘opt in’ to provide a narrative before it is included, but may also choose to opt out at any time during the process.
Customers may begin opting in as soon as March 26.
Before the complaint can be publicized, the consumer must have a confirmed relationship with the company, the complaint cannot be a duplicate and it must be submitted through the CFPB website. The CFPB will remove all personal identification so the complainant cannot be identified.
Richard Hunt, president and chief executive of the Consumer Bankers Association, said the agency could substantiate the complaints before posting them but is not doing so. “The CFPB has the ability to demonstrate trends, allow for an appeals process, and normalize data — much like other regulators,” he said. “Puzzlingly, they choose not to use any of these illuminating mechanisms. Today’s action does not reflect the principles of accountability, transparency, and data-driven decision making which the bureau professes guides its work. This agency can do better.”
The CFPB is taking public comment on how to publicize consumer compliments independent of the complaint process. ##
(Image credit: Consumer Financial Protection Bureau)
