Financial supervisory agencies are reporting record-high complaints—and that’s not including complaints on social media and review websites like Yelp and Google. These complaints serve as both a warning and an opportunity for financial institutions that have systems in place to monitor, report, and analyze complaints.
Consumer complaints to the Consumer Financial Protection Board (CFPB) reached a record high in 2020. December 2020 alone saw 48,386 complaints—up 260 percent from the previous December.
The Office of the Comptroller of the Currency (OCC) reports that complaints rose 20 percent between 2019 and 2020. Credit cards and checking account complaints made up the biggest share of complaints. Mortgage and consumer loan complaints also ticked up.
Source: OCC
The increase in complaints is not going unnoticed. In a recent blog, Acting CFPB Director Dave Uejio said that “Consumers and their experiences to be at the foundation of CFPB policymaking.” This includes consumer complaint reports, as Uejio made clear in his article, and the CFPB is staffing up.
Three key takeaways:
Complaint management is a requirement of every compliance management system. If your institution isn’t confident in its ability to identify and analyze complaints, now is the time to update your complaint management program. Successful complaint management processes are centralized and organized and work to protect your institution. Haphazard programs lacking oversight are a serious compliance risk.
If your complaint management program needs improving, these resources can help get you started:
If you’re a Ncomply customer, you already have the tools you need to elevate your complaint management efforts thanks to the solution’s built-in and centralized complaint management function. Contact your customer service representative to find out how to put it to use.