NAFCU: CFPB Consumer Complaint Database Potentially Misleading
Washington – The National Association of Federal Credit Unions today expressed strong concerns over the Consumer Financial Protection Bureau’s (CFPB) decision to launch a public Consumer Complaint Database on credit cards.
“NAFCU understands the CFPB has the authority to investigate legitimate consumer complaints,” said Fred Becker, NAFCU president and CEO. “Unfortunately, we fear that this new database may open the door to frivolous and unsubstantiated complaints. In addition, given the nature of viral media, disclosing all complaints may paint a misleading picture and trigger reputational risks for solid institutions that could raise safety and soundness concerns for the financial institutions in question.”
According to the CFPB, the consumer complaint database will only include data involving providers with more than $10 billion in assets. The Bureau is also issuing a proposal for comment on extending the database to financial products other than credit cards, such as mortgages and other consumer lending products, checking accounts, savings accounts, check cashing services and remittance services.
“Moreover, the CFPB’s decision to pursue extending the database to additional financial products would further exacerbate the potential risks for financial institutions with unproven value for consumers.”
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.