MBA Stevens: The CFPB’s complaint database is unreliable
Fails to verify the complaints
Very few people outside the Consumer Financial Protection Bureau are happy about the CFPB’s consumer complaint database.
Here is some of our past coverage.
Now David Stevens, president and CEO of the Mortgage Bankers Association, weighs in with his take on the unreliable tool.
Since the inception of the CFPB complaint database you may have read, in multiple news publications, my serious concerns about the entire idea of an online review site that permits unverified complaint narratives without allowing the accused the ability to respond.
I firmly believe this database continues to fail the transparency test, and without real reforms its so-called growing pains will ultimately be its undoing.
The basic premise of this database is noble. Consumers can voice their complaints about their experience with a lender and take comfort in the knowledge that their concerns are being heard.
But the CFPB has failed to install a mechanism to substantiate or verify any of these complaints. In fact, the Bureau does not allow financial institutions to adequately respond to the claims. Equally concerning, the database could be putting the consumer’s privacy in jeopardy. Misinformation can, and has, infected the entire system and CFPB has yet to take real steps to correct it.
Read the full column here.