CFPB Consumer Complaint Risk Signal Report
Trends and compliance risks for financial institutions based on consumer complaints submitted to the Consumer Financial Protection Bureau
Why Should You Care About Consumer Complaints?
In the CFPB’s words: “Consumers’ complaints and organizations’ responses provide the Bureau with important information about the types of challenges consumers are experiencing and the effectiveness of an organization’s compliance management system.”
According to the CFPB, companies can use consumer complaint information to:
- Gain important knowledge about their business, competitors, and industry
- Identify potential risk management weaknesses or deficiencies, including regulatory compliance violations
- Reveal weakness(es) in products, services, functions, departments, or vendors
- Identify opportunities to enhance the consumer experience and understanding of financial products and services
By being aware of the types of challenges that consumers are facing in the marketplace, organizations can use this information to shape their compliance programs to focus on the most pressing issues presenting risk to their business.
Organizations can better protect consumers and avoid the complaints that lead to investigations and enforcement actions by the CFPB by proactively monitoring marketing communications for compliance with regulations and for potential deceptive practices.
