Credit Card Consumers Find Valuable Information on Website
In June, the CFPB launched a website that posts complaints against specific banks and other lenders made by credit card customers.
December 20, 2012
Credit Card Consumers Find Valuable Information on WebsiteThe Consumer Financial Protection Bureau is working to help American consumers by making credit card company and other lender practices more transparent. In June, the CFPB launched a website that posts complaints against specific banks and other lenders made by credit card customers.
Visitors to the website can search for complaints by type, such as by particular complaint, card issuer name and by zip code.
Resistance From Banking Industry
The banking industry has fought the creation of this website. The banking industry did not want the names of specific lending institutions to be released on the website. Banks argued they would take an unfair hit to their reputation since some of the complaints may not be valid. Also, the CFPB oversees only those banks with $10 billion in assets, so the industry is concerned that larger banks will appear to be "the bad guys" while smaller institutions will come out unscathed.
The CFPB, however, takes steps to assure that customer complaints are valid by determining if the complaining consumer actually has a debt with the bank and if there has been more than one complaint filed by the same consumer.
Benefits to Consumers
The CFPB received about 17,000 credit card complaints between June 2011 and July 2012. The group also deals with complaints about mortgages, student loans, other consumer loans and various bank services. It plans to increase public availability of complaints about services other than credit cards as well. The website also includes information on the company's response to a valid complaint, such as whether it responded in a timely way and what actions the company took to resolve the complaint.
The most common reported complaint was billing dispute issues.
The website may help consumers take preventative measures by avoiding companies that have a track record of consumer complaints. However, consumers with current debt or credit card disputes should contact an attorney to help them ensure that their legal rights are protected.
Article provided by Law Offices of Brian A. Barboza
Visit us at http://www.barbozalaw.com