It’s said that sunlight is the best disinfectant. If that is indeed true, then the financial industry is about to get a little healthier. That surely was the intention of CFPB when they published more than 7,700 consumer complaints last week. The database of complaints is searchable and contains, where available, responses from the financial institutions named in the complaint.
“Just like an Amazon review can help you avoid a faulty product, the CFPB complaints can help you avoid financial institutions with poor track records. Likewise, it can assist you in finding a financial company with little to no complaints. The CFPB accepts complaints on financial products including credit cards, mortgages, bank accounts, private student loans, vehicles and other consumer loans, credit reporting, money transfers, debt collection, and payday loans.”
It remains to be seen if the publically available complaints will actually lead to better outcomes for consumers. Unlike Amazon, the CFPB doesn’t seem focused on collecting positive customer reviews as well. And of course:
“As with any other review platform, it should be taken with a grain of salt…Some consumers delight in complaining, while others are genuinely interested in helping fellow consumers from struggling through a similar situation.”
Overview by Alex Johnson, Sr Analyst, Credit Advisory Service at Mercator Advisory Group
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