The CFPB has taken a hardline on companies with ineffective complaint management processes and companies face hefty fines. Additionally, the most common reason that customers give for switching banking products is poor customer service, and it costs $200 on average to acquire a new card customer. Properly responding to a customer complaint can lead to increased activation, utilization, penetration and decreased servicing costs and regulatory focus. A robust complaint management program enables banks to leverage…
Aaron Klein Director, Financial Regulatory Reform Initiative, BIPARTISAN POLICY CENTER
The presentation will begin with a conversation about the evolving marketplace, including some general background on traditional payment providers and then describe new non-traditional entrants and the types of payments services they are offering. The presentation would then summarize established federal banking laws and regulations applicable to payments and payment providers. These laws, which are administered principally by the Federal banking agencies and the CFPB. There would be significant focus on the scope of authority granted to the CFPB and how that agency may impact the provision of payment services by non-traditional payment providers.
Unfair, Deceptive, or Abusive Acts or Practices, referred to as UDAAP is one of the guiding principles being used by the CFPB. It impacts product terms and marketing; add-on products; rewards programs; and fair lending. This presentation will cover what the what it takes to get UDAAP right as a strategic risk management challenge, including the importance of building strong complaint management, analysis, and reporting systems.