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Latest Consumer Bureau Issue Is Credit Card Hotline

By Cornelius Nunev


The debate over the Consumer Financial Protection Bureau is getting worse thanks to several issues, includ-ing the proposed charge card hotline. The hotline would take grievances and other data directly from consumers. The agency would compile the in-formation and decide to act when appropriate. Banks and credit card issuers are concerned with information be-ing inaccurate and not being used in the correct manner. This would help keep all payday advance data private.

Credit cards to get crowdsourcing penalties

Daily Finance explains the Consumer Financial Protection Bureau is consider-ing a credit card hotline for consumers to complain about troubles at, which is causing lots of debate. The hotline would be so customers can report any abuse that occurs. Then the Bureau would give that information to states to use. Basi-cally, the complaint system would be crowdsourcing; the data would come straight from the people. Card issuers could very easily get fines from government officials without even considering what the grievances are about. Card issuers and banks, according to Bloomberg, are seeking to keep the database private, so only the card issuer, the consumer who complained and the right regulatory agency can view data about the individual complaint.

Ways to stop data from flowing

The idea behind making the data private is that it restricts the flow of raw data, which can be unfairly biased against banks. When the CFPB begins on July 21, so will the complaint line. Everything said about credit card issuers could be accessed with the way the line is set up. It is important to consider that people will always complain about fees no matter what, although banks and card issuers may just want the data private so nobody will know what their dishonest practices are. It could be terrible for the public data to be streaming like that.

Future of consumer bureau clouded

The job of the CFPB is to monitor every little thing involving consumer credit. This involves debit cards, charge cards, payday loans and mortgages. Congress has been fighting over the organization. Three different bills were recently intro-duced to limit the bureau, according to Reuters, two of which concern who's in charge. One bill would keep the Consumer Financial Protection Bureau from taking on regulatory activity from other agencies until it has a ded-icated director and another would replace the current structure from having a single director to having a five member panel. Warren is the White House advi-sor getting the bureau ready that has been considered for director, but Republicans are against that. The bureau is sup-posed to start operations in July. This might not actually happen though.




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