Latest Consumer Bureau Issue Is Credit Card Hotline

By Cornelius Nunev


The brouhaha over the CFPB has only gotten worse in recent weeks. The latest log on the fire is the charge card hotline which the CFPB is supposed to be opening soon. The hotline would essentially take calls from con-cerned consumers, and the agency would compile grievances about credit card corporations. However, banks and card issuers want re-strictions placed on the information. This would help keep all payday cash advance data private.

Penalties for banks and card businesses to avoid

A lot of debate was put into the Consumer Financial Protection Bureau before the credit card hot-line was considered. This hotline would make it so consumers can complain about charge card issuers and practices they have, Daily Finance states. The hotline would be so customers can report any abuse that occurs. Then the Bureau would give that information to states to use. The grievances would come from crowdsourc-ing. The consumers would file the complaints themselves. Then, government officials would get the complaints and fine card issuers. They would not even try to determine what the issue was first. Bloomberg states that card issuers and banks try to keep a private database so that only the few individuals that need to be involved will be.

Keeping data hidden

The flow of data can hurt banks a lot, which is they're fighting for private information. When the Consumer Financial Protection Bureau begins on July 21, so will the complaint line. In its current for-mat, any person could access the complaint data and see every little thing said about every credit card issuer that it tracks. It is true that financial institution and card issuers may not want the information out so nobody knows what is really going on. It is also significant to consider many people will always com-plain about fees, regardless how reasonable they are. A way to get data straight from the public is certainly admirable, however without restraint it can easi-ly be used inappropriately.

Future of consumer bureau clouded

Almost every part of consumer finance, including debit and credit cards, mortgages and payday loans, will be monitored by the Consumer Financial Protection Bureau. However, the existence of the organization has brought on a fight in Congress to break out. Reuters reports that there were three bills introduced to limit the bureau recently including two on the director. With one bill, a director would be required before the Consumer Financial Protection Bureau could get to work. Another would make it so a five member panel would replace the one director. Congressional Republicans have made it clear they are not in favor of Elizabeth Warren, the adviser to the White House who's assisting in getting the bureau ready for operation. It does not seem likely that it will begin operations in July as sched-uled.




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