Keating compared the CFPB’s approach to the longstanding approach of the prudential regulators, in which complaints are kept confidential and shared with banks to correct problems and address supervisory concerns. The bureau’s approach, however, “erodes customer privacy, impairs the confidential nature of the exchange between customer and banker, compromises the supervisory process and introduces unreliable and misleading information into the market,” he said.
The legislative language and history authorizing CFPB complaint collection indicates that the bureau should follow the other regulators’ long-standing confidential process. Keating said:
This mistaken policy is made possible only by the bureau, however well-intentioned, endeavoring to act without statutory authority and contrary to congressional intent.
Read the letter.