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PERSONAL FINANCE
Federal Trade Commission

Watchdog's complaint tracking gets results

Jayne O'Donnell
USA TODAY
  • CFPB database has 177%2C000 complaints covering credit cards%2C student loans and more
  • Cordray says consumers should look at companies targeted by complaints
  • %246 million returned to consumers in settlement involving auto loans to servicemembers

The Consumer Financial Protection Bureau's growing database of financial services complaints could help consumers rule out companies that appear often, but CFPB Director Richard Cordray says other factors should be considered too.

Richard Cordray, head of the Financial Consumer Protection Bureau, speaks with USA TODAY's Editorial Board.

Cordray, in an interview with USA TODAY's Editorial Board, said the number of complaints against a particular company may not yet be enough data for consumers to "take to the bank" but should be considered along with price and word of mouth.

"Consumers now have a place that they can go to get somebody to work on their problem and try to get it solved," Cordray says. "We think the consumer database is one of the most exciting things we've done."

CFPB is now the government's top watchdog over financial services. The bureau supervises the companies that make and service mortgages and other loans, issue credit cards, make money transfers, provide credit reports and collect debts. The CFPB's public database, which identifies companies and the number of complaints lodged against them by category, is already making a difference, Cordray says.

Companies are responding quickly when contacted about the complaints because they know the database is "backed by potential supervision and enforcement authority," he says. When the bureau sees "patterns in that data, we won't hesitate to act," Cordray says.

CFPB tries to get complaints resolved with the company after it determines whether they seem valid and the person had a relationship with the company. Then it determines whether the consumer is satisfied with the outcome — or at least should be. The bureau lists complaint outcomes online, noting whether they were resolved with or without the consumers getting money back.

It can take days to resolve simple credit card disputes but months for complex mortgage complaints, Cordray says.

Up to 150 CFPB employees work on complaints, and the bureau plans to add about 30 more soon. Cordray says he expects the CFPB will ultimately end up getting millions of complaints a year because it is actually attempting to resolve them. Most federal agencies, such as the FTC, use complaints to help determine what to investigate.

The database's existence is already having at least one positive effect.

"We have clear indications it's affecting company behavior," Cordray says. "They certainly sit up and take notice more when we're involved."

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