The backlash continues against CFPB’s proposal to make narrative elements of the complaints in its Consumer Complaint Database public – which NAFCU has repeatedly raised concerns about.
NAFCU is coordinating with the Financial Services Roundtable and a number of other trade groups on the issue. NAFCU is also talking to members and preparing a comment letter to the CFPB in response to the proposal, which NAFCU believes has the potential to increase reputational risk to credit unions. Further details about the proposal are included in NAFCU Regulatory Alert 14-EA-08; comments are due to CFPB on Sept. 22.
FSR also started a campaign pushing back against the proposal. According to The Hill, FSR plans to purchase ads to target the proposal and call attention to how the narratives, which will not have been confirmed, could damage financial institutions’ reputations.
Last month, a group of banking and business groups protested the proposal through a joint letter, saying it “raises many serious legal and practical issues.”
NAFCU Director of Regulatory Affairs Mike Coleman responded to the proposal in a statement, “Before the CFPB chooses to expand the content of subjects included in the database or pursue its narratives proposal issued last week, it should look to ensure that proper safety controls are in place to protect credit unions and other financial institutions from unsubstantiated claims. Credit unions already have robust procedures in place to address member complaints and take great care to address their members’ complaints directly to foster an ongoing relationship.”continue reading »