Tag Archive | Bank

Consumer Financial Protection Bureau looks to be Further Complicating Consumer Complaint Process

It looks like the CFPB is looking to add another layer of complexity to its customer dispute/complaint process. When this change goes through, consumers will have to wade through a two part online process that will ask consumers to give a rating to how a company handles complaints and to even log a wordy description that supports their dispute.

The CFPB is looking to get comments from the public about a recent request that came in as part of the Paperwork Reduction Act. This request would give people the chance to submit feedback on how the companies they are logging disputes against handle complaints internally. The Bureau plan on doing this with the addition of a survey and a free text section which allows consumers to describe their experience prior to the closing of a complaint.Consumer Financial Protection Bureau

The agency gave notice of this the first week of August. As of now, it is being called the Company Response Survey. It is slated to take the place of the dispute function that is currently in use and allows people to submit positive or negative feedback while they are filing complaints. The feedback will be looked at and any personal information will be removed prior to it getting officially published on the complaint database that the CFPB currently oversees.

This survey will ask consumers to rate how the company handles complaints via a one to five scale, while also including an opportunity for people to describe why they are giving the rating that they are. The CFPB published a Federal Register notice that stated, “Positive feedback about the company’s handling of the consumer’s complaint would be reflected by both high satisfaction scores and by the narrative in support of the score. Negative feedback about the company’s handling of the consumer’s complaint would be better supported and more useful to companies than the current ’dispute’ function.”

The CFPB will share the performance feedback information with the companies that respond to complaints to defend/represent its complaint handling process. Additionally, the CFPB will use this information to provide information to enforcement, supervisory and regulatory work that has a relation to the consumer financial products and services industry. The CFPB said that this survey is building on the foundation of a request that was submitted in 2015, and that it will allow the agency to stay centered on “… ways to highlight consumers’ positive experiences with financial service providers.”

The original CFPB consumer complaint database was launched to the public in 2012. The Bureau officially added complaints about debt collection to the database the following year. In the summer of 2015, they added complaint narratives to the growing database. This feature lets consumers share the experiences that they have had by using their own words. Since the database has been publicly available, debt collection companies have been the entities that seem to respond to the most complaints quickly. The CFPB published data that indicated that debt collection companies responded to about 93 percent of complaints logged in a timely manner.

It is worth noting that mortgage company complaints and complaints about credit card companies have made up a bulk of the consumer disputes received so far. Alternative financial service complaints have been few and far between. This is worth being aware of, being as the CFPB has seemed to focus a lot of its efforts on policing providers of alternative financial services, when it seems to be the traditional financial institutions that have generated the most complaints from consumers since the official launching of this database.

The Most Common Money Problems that Americans Face

money-problems_7-most-common-causes-of-divorceSome people say, “More money, more problems.” Many of us, however, would contend that having less than enough money is enough of a problem as it is, and would love the opportunity to have more cash at hand for taking care of expenses and making purchases. Regardless of just how much money you make every year, though, you can take a bit of solace in knowing that many of the most common money problems you face are also issues for your fellow Americans.
But just what are the most common financial problems that people in this country face on a regular basis? It turns out that there are quite a few. With brevity in mind, however, let’s take a look at the list of the most common offenders.
Money Problem #1 – Not Enough Saving Going On
Chances are that at some point or another someone has told you how important it is to save for a rainy day. The problem is, however, that more than a few rainy days have hit our national economy over the past few years, and most people are tapped out in the savings department. Add to this the fact that many people (especially millennials) are not saving much money at all and you get a recipe for financial ruin. While many people may not have the ability to save much, making your savings an ongoing priority is a must – whether you are talking about being prepared for retirement or just making it through that next, proverbial rainy day.
Money Problem #2 – Making it from one Pay Day to the Next
With the price of living getting higher and higher by the day, it is no wonder that so many people have a hard time stretching their funds from one pay period until the next one arrives. A lot of Americans end up “Robbing Peter to pay Paul” and get caught up in a never ending cycle of never quite getting through from one payday until the next one arrives. Putting together a realistic budget – one that you stick to religiously – is the only way to get out of this cycle. You may have to make a few sacrifices – tighten up the belt, so to say – but in the end following a budget will allow you to avoid this all-too-common financial problem that plagues millions of people in this country every day.
Money Problem #3 – Ever Increasing Debt
If there is one financial problem that we would all do well to eliminate it would be the ongoing accumulation of consumer debt. It’s so easy for people to get approved for credit cards these days and then to go hog wild. The short term good feelings that come from making some purchases that you really can’t afford soon become a thing of the past when the ongoing yoke of consumer debt continues to mount up. The first step to getting out of debt is to avoid accruing any new debt. This might mean locking up the credit cards or even getting rid of them entirely. Slowly but surely you can escape the pain of ongoing consumer debt, and you will be very happy that you went without those expensive lines of credit when you are free and clear.
There you have it – a list of some of the most common financial problems that Americans face on a regular basis. If you can take action to get even these three financial problems under control, you’ll begin to feel more in control and will ultimately have more freedom to live the lifestyle of your choosing.