Three bank trade groups are taking aim at the Consumer Financial Protection Bureau's recent request for information related to customer service at large banks and credit unions.
In a joint letter to the CFPB on Monday, the American Bankers Association, the Bank Policy Institute and the Consumer Bankers Association challenged the legal basis of the CFPB's request and accused the agency of mischaracterizing the quality of customer service that banks provide. The CFPB's criticisms, which the groups described as unfair, could push consumers out of mainstream banking, they argued.
"The CFPB's statements in the [request] unfairly characterize the quality of customer service provided by banks and appear to reflect the CFPB's predetermined conclusions that banks do not provide high-quality customer service," the groups wrote. "This approach is unhelpful to consumers as they navigate the financial services marketplace and is likely to confuse them."
In response to the letter, the CFPB pointed out that it "receives thousands of complaints each year from consumers about customer service difficulties at banks and credit unions."
"We disagree with the assertions outlined in the joint letter and we hope that industry will work constructively with the CFPB to restore real relationship banking and competition to the financial services sector," a CFPB spokesperson said Monday afternoon in an email.
The industry feedback comes more than two months after the CFPB first
The consumer bureau wanted to know how long a customer typically waits on hold to reach a bank's customer service, how often calls are dropped or disconnected, if automated systems are helpful and how customer service representatives are evaluated and compensated by banks.
The banking groups argued that the CFPB doesn't have the authority to regulate customer service or relationship banking, and that doing so would exceed the CFPB's official duties as determined by Congress. They also challenged the notion that high-quality relationship banking is only possible face to face and not through online and digital channels.
The Consumer Financial Protection Bureau said a company doesn't need to experience a data breach for the agency to consider taking action.
The industry groups cited an American Bankers Association survey from October 2021, in which 97% of consumers ranked the service they received from their bank as "excellent," "very good" or "good." They also pointed to an American Bankers Association/Morning Consult survey in February that showed nine out of 10 Americans with a bank account reported being "very satisfied" or "satisfied" with their primary bank.
"The CFPB is misguided in suggesting that superior customer service can be provided only through live interactions with a bank representative," the groups wrote. "Banks serve customers where they are and at the times when customers want to access banking services. The multitude of ways customers can access banking services and receive assistance with those services is a hallmark, not a detriment, of the U.S. banking system."
The trade groups also hit back on the idea that industry consolidation is undermining customer service. They cited data from the Federal Deposit Insurance Corp. showing the number of bank branches in the United States increased by about 40% between 1990 and 2020.
Since 2009, however, the number of branches has declined by 12.4%, the same FDIC data shows.
Monday was the final day to submit comments to the CFPB.
The agency said the feedback could be used to develop future policy guidance and other initiatives related to consumers' right to get information about their bank accounts.
