March 7, 2013 - A new FTC report details the 10 most-cited U.S. consumer complaints, but credit unions can find even more useful information by digging deeper into the report's findings, NAFCU Chief Operating Officer Anthony Demangone writes in his latest Musings from the C-Suite blog post.
For example, Demangone writes, credit union executives should brief their boards on not just the national findings, but also the state-specific data. In the case of Alabama, the state's consumers focused 20 percent of their complaints on debt collectors, banks and lenders, not counting cases of identity theft, he notes. "You can then explain how your credit union manages risks in those areas," he writes. "And such an analysis could easily be done for every state where you have operations. Just an idea."
Credit unions can learn more by noting what agencies are hearing those complaints, he notes. The report cites the Better Business Bureau as the number one source of complaint data, followed by the Internet Crime Complaint Center, Privacy Star, the CFPB and states' law enforcement agencies. As the CFPB amasses more complaints, Demangone said, expect to see the number and percentage of complaints about financial institutions rise in FTC's reporting.
Credit unions can learn key risk management tips and essential information about Bank Secrecy Act compliance by attending Demangone's session at NAFCU's Board of Directors and Supervisory Committee Conference, scheduled May 15-17 in Asheville, N.C.