Page 2 - ARUBA TODAY

A2 UP FRONT
Monday 24 april 2017
Public window on financial complaints could be closing soon

KEVIN FREKING responded Bill Himpler, ex- ror.”
Associated Press ecutive vice president of The bureau does not verify
WASHINGTON (AP) — U.S. the American Financial Ser- whether the complaint is
consumers filed nearly vices Association, a trade valid before making it pub-
300,000 complaints last group representing banks lic. Complaints are added
year about their dealings and other lenders. “Some- to the database after the
with banks, credit card is- thing needs to be done.” company responds or af-
suers and other financial The exchange reflects ter the company has had
services companies. Most what House Republicans the complaint for 15 days,
of those complaints were are thinking as they try to whichever comes first.
compiled and made avail- make changes to Dodd- Some groups are alarmed
able for anyone to see as Frank, the law passed in at the potential changes.
part of a database admin- the aftermath of the 2008- Consumers Union said the
istered by the federal gov- 2009 financial crises. Initial- database is a vital tool that
ernment. ly, GOP lawmakers wanted can help consumers make
But Republicans working to require that consumer informed decisions.
to overhaul the financial In this Oct. 7, 201 file photo, Consumer Financial Protection complaints be verified as “It’s not as if the CFPB is tak-
regulation law known as Bureau Director Richard Cordray listens to a speaker during a accurate before they were ing information and putting
Dodd-Frank want to bar hearing in Denver. published. Now, members it on the database without
publication of information Associated Press of Congress want to pro- some due diligence,” said
from that database, which should they have a dis- dermilk, R-Ga., said at a hibit publishing the com- Pamela Banks, senior poli-
industry groups have long claimer on there that says congressional hearing this plaints entirely. cy counsel for Consumers
criticized as potentially mis- it’s a fact-free zone, or this month. Rep. Jeb Hensarling, R-Tex- Union. “Everything is trans-
leading and incomplete. is fake news? That’s re- “Once the damage is done as, chairman of the House parent. Everything is out
“Is the purpose of the da- ally what I see happen- to a company, it’s hard to Financial Services Commit- in the open. People can
tabase just to name and ing here,” Rep. Barry Lou- get your reputation back,” tee, has scheduled a hear- reach their own conclu-
shame companies? Or ing for Wednesday to begin sions.”
discussing the Dodd-Frank She said “consumers
replacement. The legisla- should not be kept in the
tion would relax some of
the law’s financial rules blind” about trends that
and give Congress and the can emerge from listing
White House more control the complaints, and that
over the Consumer Finan- companies concerned
cial Protection Bureau, about serving the public
which runs the complaints should find the information
database. of great use. “In my mind, if
That agency has published you’re treating consumers
more than 730,000 com- fairly, you would be eager
plaints since launching to see if there is a problem,”
the database nearly five Banks said.
years ago. Complaints are Detractors note that the
streaming in at a rate of Federal Trade Commission
more than 20,000 a month, maintains a database of
but not all make it into the consumer complaints re-
database. Some people garding data security, de-
don’t fill out all the required ceptive advertising and
information. Also, many identity theft. The FTC does
complaints are referred to not publish those individ-
other government agen- ual complaints but makes
cies for jurisdictional rea- them available to law en-
sons. forcement to assist in fraud
The information published investigations. It publishes
includes the date, the an annual summary of top
consumer’s ZIP code and complaints without getting
the company involved. It into their details.
includes how the compa- Kate Larson, director of the
ny responded, whether it Center for Capital Mar-
did so in a timely way and kets Competitiveness at
whether the consumer dis- the U.S. Chamber of Com-
puted the company’s re- merce, said it was “a bit of
sponse. a departure” from other
The database has more regulatory agencies for the
than 130,000 complaints in bureau to publish the com-
which consumers shared plaints and consumer nar-
a narrative of their experi- ratives. She said the Cham-
ence. Companies select ber has asked the bureau
from among nine respons- on occasion to take down
es, such as “Company dis- complaints the Chamber
putes the facts presented considers inaccurate and
in the complaint” or “Com- to provide an appeals
pany believes complaint is process, but that didn’t
the result of an isolated er- happen.q