The Consumer Financial Protection Bureau wanted feedback on its complaint database.
The Bureau got an earful from several banking and credit organizations, associationsnow.com reports.
In response to a plan by the CFPB to “normalize” the data provided to the public through the database, groups such as the Mortgage Bankers Association (MBA), the National Association of Federal Credit Unions (NAFCU), and the Consumer Bankers Association (CBA) continued to raise fundamental concerns but also offered feedback regarding how to improve it.
“While we strongly object to the public display of unsubstantiated complaint narratives in the database, MBA believes taking the several steps we recommend, including seeking further comment, could improve the database,” wrote Steve O’Connor, MBA’s senior vice president of public policy and industry relations, in a letter to the bureau earlier this week.
MBA claims that four-fifths of issues raised don’t require action beyond an explanation – and posting such complaints could mislead consumers.
The groups say the complaints in the database are often out of context and do not offer the full picture. Unlike a consumer-feedback service like Yelp, which includes both good and bad comments on a company’s service, the database publishes only negative comments. A more complete story would be more beneficial to consumers, the groups say.
“While industry has long advocated for normalization, we continue to be concerned consumers are being misinformed by unverified data; stress the importance of cautiously assessing how to properly normalize data; and urge the bureau to adopt informed disclosures to promote transparency in the marketplace,” the CBA wrote in the letter.