Charge Card Hotline Is Latest Issue In Customer Bureau Fight

الأربعاء، 5 أغسطس 2015

By Cornelius Nunev


The debate over the CFPB is getting worse thanks to many problems, includ-ing the proposed charge card hotline. Consumers could call this hotline to register a complaint, and the agency would compile the data it receives in a database which it would use when and if it decided to act on a complaint. That said, since the Consumer Finan-cial Protection Bureau hasn't disclosed how it proposes to investigate the information, and that is partially why banks want the data restricted. This would help keep all payday cash advance data private.

More penalties put on banks and card compa-nies

Lots of debate was put into the Consumer Financial Protection Bureau before the credit card hot-line was considered. This hotline would make it so consumers can complain about charge card issuers and practices they have, Daily Finance states. The Bureau would take the data customers call in with reporting a business and give it to the states. The basic idea is the data would be crowdsourcing for grievances. Card issuers could easily get fines from government officials without even considering what the grievances are about. Most banks and card is-suers are hoping to keep the grievances private. That means the data would stay between the bank, the government agency and the person who complained rather than having a public database.

Flow of data to stay with banks

Information needs to be private for banks. The flow of raw data can hurt a bank's image quite a bit. Currently, the complaint line is set to go live on July 21, when the CFPB is supposed to start operations. The line is set up so the information can be seen by any person who wants to see it. That means complaint data can very easily be accessed. Though it may seem that banks and card issuers want to keep this data from the public to keep everyone from seeing the dishonest practices they engage in, there is a fair point to consider; a lot of people are apt to complain about fees regardless of whether those fees were fairly levied. A way to get data straight from the public is certainly admirable, however without restraint it can easi-ly be used inappropriately.

Future of customer bureau clouded

The job of the CFPB is to monitor everything involving consumer credit. This involves debit cards, charge cards, payday loans and mortgages. One organization with all that power has started debate. Congress has fought about this continuously. Reuters states that there were three bills introduced to limit the bureau recently including two on the director. One of these would give a five member panel power instead of one director while another would keep the CFPB from having control until a director is assigned. Congressional Republicans have made it clear they are not in favor of Elizabeth Warren, the adviser to the White House who's assisting in getting the bureau ready for operation. The bureau is intended to start operations in July. This might not actually happen though.




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