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Friday, March 29, 2013

CFPB Releases Consumer Complaint Data, Includes Debt Protection Products

Yesterday, the CFPB released its database of consumer financial complaints. According to CFPB director Richard Cordray's remarks, the CFPB "has received more than 130,000 complaints from individual consumers, including complaints about mortgages, credit cards, student loans, auto loans, bank accounts, credit reports, and more."

The CFPB also released a "Snapshot" of the complaints received, which shows that 23% (approximately 30,600) of the complaints are related to credit cards.  Of those, 4 percent of the complaints focus on Debt Protection Products (DPPs).

How the complaints are handled
  • A consumer submits a complaint to the CFPB and it is individually processed;
  • The complaint is forwarded via a secure web portal to the appropriate company;
  • The company reviews the information, communicates with the consumer as needed, and determines what action to take in response;
  • The company then reports back to the CFPB and to the consumer;
  • The consumer can then review the response and provide feedback to the CFPB;
  • The CFPB assess the feedback, and if the complaint merits further review, it is sent to their investigations unit.
A concern of the financial industry is that the consumer complaint data is not verified before being placed in the database.

View the Snapshots of Complaints Received.

Read Cordray's Prepared Remarks.

Read CFPB's Press Release.

Learn more about the Consumer Compliant Database.