As the newly minted U.S. Consumer Financial Protection Bureau prepares to launch a hotline for consumers to register complaints about banking services and products, the banking industry and consumer groups are launching into a tussle over how much of hotline's information will be made public, according to a Bloomberg report.

Banking industry executives are apparently concerned that unsubstantiated complaints will unduly influence consumers, so they want to prevent the new bureau from airing all complaints in its database. Consumer groups, by contrast, want everyone to have full access to the complaints database -- a conflict the Bureau hopes to resolve before its credit card hotline goes live on July 21, the Bloomberg report notes.

In some ways, the bureau's hotline database could work like a crowd-sourcing review site like Yelp or Epinions.com -- assuming consumers get full access to review all the complaints and have the ability to weigh in with their own. Crowd-sourcing websites' greatest influence on the marketplace lies in their ability to advise consumers about which businesses are worth patronizing and which ones aren't.

But unlike reviews on Yelp, complaints sent to the bureau would have bite. Under the Dodd-Frank financial reform law passed in July, complaints the CFPB receives will be distributed to relevant state and federal agencies for review and possible enforcement action, the report notes.

The banking industry is reportedly hoping the bureau will restrict information regarding each complaint to the consumer who lodged it and to banking regulators, says the report.

The bureau has yet to announce its policy on what consumer complaint data will be made available to the public, but earlier comments from Elizabeth Warren, the executive setting up the agency, suggest she would lean toward openness. Her clear goal is for a bureau that does right by consumers.

Whether or not many people would take the time to scan through the CFPB database when considering which lender to use for a new credit card or car loan is another question entirely.

Increase your money and finance knowledge from home

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

Add a Comment

*0 / 3000 Character Maximum

87 Comments

Filter by:
billkulikdc

Empty barrels make the most noise........

May 17 2011 at 12:07 PM Report abuse rate up rate down Reply
LEE Resolution

Hush money, payoffs to congress, banking conspiracies, oil conspiracies; uninformed generalizations by folks who simply have no idea of how 'things' work. Realizing this, it becomes easier to see how a man like Barack Obama won the POTUS job.

May 17 2011 at 11:19 AM Report abuse +1 rate up rate down Reply
LEE Resolution

Queen of England might also be involved....

May 17 2011 at 11:12 AM Report abuse -1 rate up rate down Reply
LEE Resolution

Other than regulating commerce between the states which is wide enough latitude), congress has no more business getting involved in banking than they do any other private enterprise.

May 17 2011 at 10:59 AM Report abuse rate up rate down Reply
Barbados

Congress should pay attention to how banks adjust to the new rules and decide if what they're doing makes any sense at all. Thats how we got in the whole mortgage crises to start with was that they were working within the rules. It just gives them the ability to charge more fee's and ridiculous interest rates on the backs of the poor.

May 17 2011 at 9:49 AM Report abuse +3 rate up rate down Reply
tmlbtb

Let me see.........the banks pay Congress to do their bidding, the public doesn't. Who day ya think is going to win this argument?

May 17 2011 at 9:42 AM Report abuse +2 rate up rate down Reply
1 reply to tmlbtb's comment
LEE Resolution

How do the banks pay congress to do their bidding ? Explain that one.

May 17 2011 at 10:48 AM Report abuse -1 rate up rate down Reply
1 reply to LEE Resolution's comment
zekandzora

O.K. here is the explanation.

Professor Quigley was Bill Clinton's mentor and teacher at Georgetown University. His book, "Tragedy and Hope" was part of Clinton's required curriculum. Prof. Quigley researched the book for more than 20 years.

Professor Carroll Quigley, quote from his book, "Tragedy & Hope"


Carroll Quigley quotes:



"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.

This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.

The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations.

Each central bank... {like The Federal Reserve}...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards {BRIBES and PAY-OFFS} in the business world."
---------------------------------------------------------------------------------------------------------------------------------------------
The evidences that this diabolical plan...{conspiracy}... was been implement long ago are over whelming and conclusive to any rational, logical observer. It is however truth that you, Lee, are neither rational or logical. You are an worn out, tired, frightened little old idiotic worm of a human specimen

May 18 2011 at 3:23 PM Report abuse rate up rate down
Mike

we all know the banks have are best interests at heart.

http://dragonwagonivaircraftmanuals.com/

May 17 2011 at 9:35 AM Report abuse rate up rate down Reply
cljvedelman

Stay away from banks. Patronize your local credit union. Better service, lower fees, local control.

May 17 2011 at 8:16 AM Report abuse +1 rate up rate down Reply
Junior

All of you have good points. Will try to make a loan at the local bank. Will tell them I am broke and can't get out of debt and would like to borrow enough to pay them off plus enough to due me until next year. Then if I need more I will be back. What do you think will happen.

May 17 2011 at 8:15 AM Report abuse rate up rate down Reply
frank1946

Bankers are a sad lot of boys these days ! They just are desparate to find customers who pay more than
debits/credits..................so fees, plastic cards and deception rule the Federal Chartered Bankers !

Amazing what they do to checking customers ! No wonder they are upset when they get exposed to the Public !

Too many MBA's and Lawyers make for CHAOS and DISGUST by all concerned ! State Banks are the way to
go now.....................small Banks still attempt to practice honesty and service !

May 17 2011 at 8:09 AM Report abuse +2 rate up rate down Reply
1 reply to frank1946's comment
LEE Resolution

Am I to understand that small local banks don't hire MBA's, CPA's, attorneys ? If that's the case, who's in there running the show ? good ole boys (and girls),

May 17 2011 at 10:52 AM Report abuse rate up rate down Reply