The CFPB does not have the authority to define and regulate “relationship banking” at financial institutions, credit union and banking trade groups told the agency this week.
“Nowhere in the [request for information] does the Bureau clarify its legal basis for extending a provision related to the ability to obtain information to scrutinizing the quality of customer service financial institutions provide to consumers broadly,” said Lisa Althoff-Simmons, interim CEO at the Heartland Credit Union Association, which represents credit unions in Kansas and Missouri.
In June, the CFPB relied on Section 1034(c) of the Dodd-Frank Act to seek information about customer service at financial institutions with more than $10 billion. However, bureau officials have since indicated they are interested in customer service and relationship banking in general.
CUNA, NAFCU, the Heartland association, and a coalition of banking groups are crying foul and contending that the request for information appears to be the first step in a CFPB move to regulate customer service.
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