Much cheer is heard round in the wake of the Senate deal finally confirming Richard Cordray as Head of the Consumer Finance Protection Bureau. Cordray actually been running the Agency since Jan. 2012, when Obama made use of his recess appointment powers. Let’s pause for a minute and reflect—Does it really mean Victory for Consumer protection?
My case, however small and isolated it may be, shows the answer shockingly looks more like Not by Any Measure.
Here are the facts:
Earlier in January, I filed complaint with CFPB about abusive overdraft charges leveled by US Bank, in excess of 100 times the original overdraft amount. I did it online through the www.consumerfinance.gov site. I was impressed with the government bureaucracy embrace of digital tools. Alas, the way technology is used at CFPB, it appears they figured it to be a fast and easy way to route your complaint back to the bank—the very entity who refused helping you in the first place, making you seek help from the Feds—and pipe their response right back to you. Hmm, the idea of an industry regulating itself and how great it actually works—Wasn’t it among the prime failures cited by activists who pushed for CFPB creation in the first place?
Back to my case: in a few days after initial filing, I see a response from US Bank in CFPB online system. The bank’s reply was much along the lines of the “Which part of No don’t you understand”. To be fair, CFPB system gave me one more shot to provide feedback on the reply substance, or lack thereof. I did so in a valiant attempt, only to find another system-generated message informing me that, Well, we did our best, but at this point it looks like we are done with your case. While there were no typos or other grammatical offenses in CFPB communication, there also was no sign anybody actually bothered to read anything.
When I look today at the CFPB website and read, We returned so many $$ millions to consumers—I don’t know what to make of it. If they are for real, How come they won’t help with a $400-ish overdraft racket? Was it really worth creating another body of apathetic bureaucrats? Do you have your own experiences with CFPB to share? - Sound off..