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NAFCU statement on CFPB announcement to allow narratives of consumer complaints to go public

WASHINGTON, DC (March 20, 2015) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alicia Nealon issued the following statement regarding the  Consumer Financial Protection Bureau’s (CFPB) announcement Thursday that consumers can now opt-in to publicly share details of their complaints about financial companies and their services – a move NAFCU believes has the potential to unnecessarily increase reputational risk to credit unions.

“Credit unions already take great care in resolving their members’ complaints directly,” said NAFCU Director of Regulatory Affairs Alicia Nealon. “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.”

CFPB said Thursday that it will not publish any “consented-to narratives” for at least 90 days after this new policy is published in the Federal Register so financial companies have time to learn about the new system.

Consumers who submit a complaint will be able to opt-in to share their narratives. CFPB has put in place certain safeguards for both financial companies and consumers regarding this new system, including:

  • consumers must opt in to share their stories;
  • consumers’ personal information will be removed from narratives;
  • companies receiving complaints can choose from a list of responses to publish and have 180 days to do so;
  • consumers can opt out anytime; and
  • complaints must follow certain criteria to qualify for publication, including a confirmed relationship between the consumer and financial company.

The bureau is also seeking input from the public on how it can collect and share consumers’ positive interactions with financial companies.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

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