On October 11, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion addressing consumers’ requests for information about their accounts with substantial banks and credit unions. According to the Bureau, Section 1034(c) of the Consumer Financial Protection Act mandates particular attention by insured depository institutions that provide consumer financial products or services, and that boast total assets over the $10 billion mark, along with their adjunct entities. Importantly, all must adhere to “comply in a timely manner with consumer requests for information”
This guideline from the CFPB directly relates to the fees that these large banks and credit unions charge for dispensing account information to customers. The Bureau’s opinion serves as a reminder that “excessive” fees for such services are not in line with the intent of the Consumer Financial Protection Act, which seeks to ensure financial institutions operate with customers’ best interests at heart.
In addition to issuing this directive, the CFPB is also returning a collective sum of $140 million to consumers. Although the specifics of these recompensing actions are not detailed, this form of restitution reinforces the Bureau’s commitment to safeguarding consumers from unjust financial tactics.
For further insights into the CFPB’s advisory opinion and the wider implications for the consumer-finance industry, this full article provides a detailed analysis of the latest development.