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A recent blog post by the Consumer Financial Protection Bureau about a consumer's problem with a bank account is one-sided and opens the door to mistaken impressions about financial institutions, a point underscored on NAFCU's Compliance Blog and the Bank Lawyer's Blog.

The July 27 CFPB post discusses "Greg," who put his name on his mother's checking account after helping her move into an assisted living facility. His mother wrote a check he didn't know about, and he never received information from the bank about the account's status until it was drawn down, went to collections and showed up on his credit report. The CFPB stepped in, the bank apologized and Greg got his money and his credit rating back.

Attorney Kevin Funnell, publisher of the Bank Lawyer's Blog, said this piece of the story is inadequate, but the pattern is a continuing one in the CFPB's partial stories about how the bureau has helped consumers. He points out, and NAFCU Director ofRegulatory Compliance SteveVan Beekreiterates inthe NAFCU Compliance Blog, that the story lacks any information about how the problem in communication began, whether the account holder(s) contributed to the problem and how the bank may have attempted to contact the account owner.

"There are simply not enough facts in the ‘Meet Greg' vignette to restrain us all from rank speculation and unrestrained hyperbole," Funnell wrote in a colorful entry that echoes NAFCU's concern about the impact of CFPB disclosures andthe potential risk toa financial institution's reputation.

Both Van Beek and Funnell are speaking at NAFCU's Regulatory Compliance Seminar, Oct. 23-26 in Seattle. Funnell is the keynote speaker; learn more.