CFPB Moving Forward With Rating System for Complaint Handling

Despite opposition from the American Bankers Association and others, the Consumer Financial Protection Bureau today took a step forward in its plan to add consumer ratings of responses to complaints to its complaint database. Under the request for regulatory approval, the CFPB would replace the function of the database that allows a customer to dispute the company’s response to the complaint with a “short survey” — and option to provide a narrative — that would allow the customer to provide feedback on the company’s handling of the complaint.

ABA has argued that the change would further erode consumer privacy and foster the spread of unverified information, noting that the subjective rating system and narrative option could further the dissemination of unreliable and potentially false information into the market. Comments on the bureau’s notice are due by Dec. 29. For more information, contact ABA’s Jonathan Thessin.