A group of banking industry organizations is challenging the legal basis for the Consumer Financial Protection Bureau’s (CFPB) inquiry into banks’ customer service practices.
Further, the groups, including the American Bankers Association, Bank Policy Institute, and Consumer Bankers Association, object to the CFPB’s assertion that banks are providing subpar customer service by investing in digital services to meet the needs of their customers.
“Banks of all sizes take very seriously the important role they play in the financial lives of consumers, families, businesses, communities, and the nation’s economy. Banks provide products and services that help consumers meet their financial needs, and they are continuously innovating to better serve customers in this highly competitive marketplace,” the banking associations wrote in a letter to the CFPB. “The CFPB’s statements in the RFI unfairly characterize the quality of customer service provided by banks and appear to reflect the CFPB’s pre-determined conclusions that banks do not provide high-quality customer service.”
The letter came in response to a request for information by the CFPB on the issue. Specifically, the CFPB issued a broad public appeal on June 14, asking the public to submit comments on “what customer service obstacles consumers face in the banking market.” The inquiry sought to identify what information is being requested from banks, how the information is requested, wait times, and any challenges in obtaining that information via different channels, among other data points.
Separately, the Credit Union National Association (CUNA) sent a comment letter on the subject, cautioning the CFPB not to issue overly restrictive standards for customer service.
“While customer service is a critical element of any successful financial institution and credit unions strive to provide the best in the market, we are concerned the CFPB’s interpretation that Section 1034(c) authorizes it to get in the middle of customer-financial institution relationships and set explicit standards for ‘customer service’ in a general sense is legally dubious,” CUNA wrote to the CFPB.
CUNA notes that section 1034(c) does not prescribe specific methods on how to comply with this provision other than requiring information to be provided “in a timely manner.” CUNA officials also say the provision does not directly relate to “customer service” or “relationship banking,” which is the focus of the RFI.
“When considering regulatory action, the Bureau should carefully evaluate and consider the impact its policy decisions may have on consumers’ available options for financial services. Prescribing one-size-fits-all customer service standards runs the risk of straining credit unions’ finite resources and would lead to a growing homogenization within the banking sector,” the letter stated.