CUNA submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) request for information (RFI) regarding relationship banking and customer services Monday.
“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,” the letter states.
The CFPB issued an RFI ostensibly related to section 1034(c) of the Dodd-Frank Act, a provision requiring large financial institutions to comply with a consumer’s requests for certain information concerning the consumers’ account.
In the letter, CUNA notes that section 1034(c) does not prescribe specific methods on how to comply with this provision other than for information to be provided “in a timely manner.” This provision also does not directly relate to “customer service” or “relationship banking,” 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 adds.