Sunday, August 2, 2015

Credit Card Hotline Causes Next Fight Over Consumer Bureau

By Cornelius Nunev


The Con-sumer Financial Protection Bureau has been an issue of major contention, and the charge card complaint hotline is the latest part of the Consumer Financial Protection Bu-reau which is causing a row. The idea is the bureau would compile information and grievances direct from consumers, and use that info when appropriate. However, banks and card issuers want re-strictions placed on the data. This would help keep all cash advance information private.

Charge cards to get crowdsourcing penalties

Daily Finance explains the Consumer Financial Protection Bureau is consider-ing a charge card hotline for customers to complain about difficulties at, which is causing a lot of debate. The hotline would be so customers can report any abuse that takes place. Then the Bureau would give that data to states to use. Basi-cally, the complaint system would be crowdsourcing; the information would come straight from the individuals. However, the grievances would also go straight to government officials who could potentially fine card issuers without vetting the complaints. Most banks and card is-suers are hoping to keep the complaints private. That means the information would stay between the bank, the government agency and the person who complained rather than having a public database.

Hope to stop data

The idea behind making the data private is that it restricts the flow of raw data, which could be unfairly biased against banks. Right now, the complaint line will start with the CFPB. This is expected to happen on July 21. The line is set up so the information can be seen by everyone who wants to see it. That means complaint data can effortlessly be accessed. It is very important to consider that people will always complain about fees no matter what, although banks and card issuers may just want the information private so nobody will know what their dishonest practices are. It can be terrible for the public infor-mation to be streaming like that.

How the future is looking

Almost every part of consumer finance, including debit and charge cards, mortgages and payday loans, will be monitored by the Consumer Financial Protection Bureau. One organization with all that control has started debate. Congress has fought over it continuously. Three different bills were recently intro-duced to limit the bureau, according to Reuters, two of which concern who is in charge. With one bill, a director would be required before the CFPB could get to work. Another would make it so a five member panel would replace the one director. The majority of the Republicans don't like the idea of Elizabeth Warren directing the bureau. She has helped get it set up as an adviser to the White House. The bureau may not actually start in July as expected.




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