H.R. 7588: Eliminating Fraud in the CFPB’s Complaint Database Act

This bill, titled the Eliminating Fraud in the CFPB’s Complaint Database Act, aims to amend the Consumer Financial Protection Act of 2010, focusing on the procedure for submitting consumer complaints to the Consumer Financial Protection Bureau (CFPB). Here’s a breakdown of the key provisions in layman’s terms:

Consumer Complaint Submission Changes

The bill proposes that any individual submitting a complaint to the CFPB must confirm the following under penalty of perjury:

• The information they provide is true and accurate to the best of their knowledge.
• The complaint is submitted by the consumer themselves or by an authorized representative. If it's a representative, they must provide proof of authorization.
• The consumer must have informed the company or entity being complained about at least 60 days prior about the issue before submitting the complaint to the CFPB.

Handling Unauthorized Complaints

If the CFPB discovers that a complaint was submitted without the consumer's knowledge or authorization, they are required to:

• Notify the consumer that a complaint was filed in their name without permission.
• Inform the company involved about who filed the complaint without the consumer's authorization.

Requirements for Authorized Representatives

The bill defines "sufficient proof of identification" for authorized representatives as documentation that identifies both the consumer and the representative. Acceptable forms of identification include:

• Social Security number or card.
• Certified birth certificate.
• Government-issued identification, such as a driver’s license.

Closure of Complaints

The bill allows companies that receive complaints to close them without further action if:

• The complaint is a duplicate of a resolved issue.
• The complaint is found to be frivolous or without factual basis.
• The complaint was not submitted by the consumer or an authorized individual.
• The complaint was intended for misleading purposes.
• The company had previously been informed of the issue and had resolved it.

Companies must notify the CFPB of the closure and reason for the closure of any complaint dealt with under these provisions.

Protection of Consumer Information

The bill mandates confidentiality for the narrative content included in complaints and responses from companies that respond to them. This means:

• The specific details of complaints will remain private and not publicly accessible.
• Aggregrated data on complaints may be published, but without personal identifying information.

Implementation by the CFPB

The CFPB will be responsible for implementing these changes, deciding on the appropriate verification mechanisms for consumer attestation and managing complaints according to the new regulations outlined in the bill.

Relevant Companies

None found.