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CFPB Begins Accepting Consumer Reporting Complaints
On October 22, the CFPB announced that it has begun accepting consumer complaints regarding the activities of consumer reporting agencies (CRAs). In July 2012, the CFPB issued a rule that granted the Bureau authority, effective September 30, 2012, to supervise firms with more than $7 million in annual receipts from consumer reporting activities. As part of its new supervision activities, the CFPB is seeking consumer complaints with regard to (i) incorrect information on a credit report, (ii) a consumer reporting agency’s investigation, (iii) the improper use of a credit report, (iv) being unable to get a copy of a credit score or file, and (v) credit-monitoring or identity-protection services. The CFPB encourages consumers to attempt to resolve any problems directly with the CRA before submitting a complaint to the CFPB in order to take full advantage of certain rights afforded by federal consumer financial laws.
Federal Reserve Board Reports on CFPB Consumer Protection Unit
This week, the Office of the Inspector General (OIG) for the Federal Reserve Board issued an evaluation of the CFPB’s Consumer Response Unit, which is responsible for managing the CFPB’s consumer complaint system. The report provides a concise overview of the CFPB’s consumer complaint process and includes the OIG’s evaluation of that process. Specifically, the OIG concludes that the CFPB’s consumer complaint process is reasonable, generally compliant with the Dodd-Frank Act, and consistent with industry best practices. However, the report also indicates that the CFPB Consumer Response Unit could improve its process by further addressing (i) inaccurate manual data entry of consumer complaints, (ii) inconsistent complaint management system data, (iii) lack of a finalized agency-wide privacy policy, (iv) lack of a comprehensive quality assurance program, and (v) lack of a centralized tracking system for quality assurance reviews.