Page 66 - Pay Magazine s2014

Government watch
CFPB: What It Means to Be a Data-Driven Agency
How to deal witH cUStomer comPlaintS, cFPB exPectationS
Stay on the right side of the cFPB when it comes to consumer complaints by:
• Showing you understand the nature of the consumer’s complaint: Recite a consumer’s complaint to the con- sumer, so the CFPB sees your company understands the complaint.
• Indicating your company has taken action to resolve the issue:
A company may respond to a complaint by choosing a response cate- gory, such as “closed with explanation” or “closed without explanation.” A company then is expected to provide a response narrative depending on the aforementioned response category the company has chosen.
• Knowing what the CFPB is looking for during an investigation:
Some complaints are chosen for in-depth evaluation, and the bureau looks at how a company has handled the complaint, such as reciting the complaint as explained above. Be forewarned: A consumer has the opportunity to dispute a company’s response and may provide a narrative to explain the reason for disputing the explanation.
• Responding if a consumer’s complaint is inaccurate: Companies should provide a full factual history to make it clear what the source of the consumer’s main misunderstanding is. The consumer may not understand or may disagree with the company’s representation of what took place, but it’s likely an investigator will understand.
• Seeking clari cation: Continue to seek clari cation from the CFPB regarding how it expects companies to comply with its rules regarding the complaint database in a way that’s fair and equitable to consumers and companies.
• Carefully considering how to respond to published narratives:
Providing a response to a consumer’s published narrative isn’t required, and responses aren’t typically reviewed by investigators. The decision to choose from the list of response options and, if so, which public response to choose should be based on public perception. There may not be a “best response.”
provides for accessing this informa- tion are di cult to use and likely unhelpful to most consumers, thus putting the responsibility in the hands of third parties to sort through and o er interpretations
of the data.
The CFPB and its Consumer Re- sponse Division have embraced the role of being the go-to source of information on consumer experi- ences in the nancial services marketplace. In taking on that role, the bureau must continue making improvements to the quality of the data it releases, rather than taking
a more is better approach. Much the way volumes of disclosures can con- ceal the real value of information they contain, undi erentiated re- lease of information submitted
by consumers to the CFPB may submerge the wealth of that infor- mation in the noise of general customer dissatisfaction.
A recent CFPB Request for Informa- tion on how to practically approach the normalization of complaint data may suggest that the bureau is tak- ing some of industry’s strongest positions to heart. Furthermore,
in a letter accompanying the OIG’s report, the [CFPB’s] acting assistant director of consumer response agreed with the report’s recom- mendations and noted that major changes in technology and pro- cedure have been made and are ongoing. Additionally, much of the study was conducted prior to sub- stantial changes in the management of the database and many changes have been implemented since.
But the CFPB can more clearly articulate how it expects com- panies to comply with its rules. Many companies are unsure of what is expected of them as far as internally managing consumer complaints and responding to them. By working with industry members that genuinely are seeking to provide quality ser- vices to their customers, the CFPB cannot only face criticism
head-on, but be a better service to the consumers it’s trying
to protect.
Tristram Wolf is an associate at Ballard Spahr LLP in the Consumer Financial Services Group. He advises clients
on federal and state compliance is- sues, and previously worked for the CFPB, where he was an attorney policy writer and investigator. He may be reached at wolft@ballardspahr.com.
64