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CFPB extends comment deadline for RFI on relationship banking and customer service
The CFPB has extended the comment deadline for its request for information (RFI) on customer service and relationship banking by 30 days; comments are now due August 22, 2022. NAFCU previously sent members a Regulatory Alert breaking down the CFPB’s RFI and soliciting feedback on how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets, as well as from their affiliates.
In the Regulatory Alert, NAFCU highlighted that:
- the RFI shows that consumers in rural areas are more likely to visit smaller banks or credit unions but face decreased banking access due to trends in banking consolidation, which may be a contributing factor to the prevalence of rural banking deserts;
- the CFPB has suggested that some financial institutions may not be offering the baseline level of customer service that consumers reasonably expect; and
- the CFPB acknowledges that increasing market concentration in the financial services industry may present challenges in implementing an inclusive relationship banking model.
The RFI also draws attention to increased digitization of banking services and consolidation within the financial sector as possible factors contributing to the erosion of responsive relationship banking models. In a press release issued alongside the RFI, the CFPB noted that its request “is part of a broader effort to restore relationship banking in an era of consolidation and digitization.”
NAFCU will continue to monitor for regulatory updates from the CFPB impacting the credit union industry.