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July 31, 2014 – CFPB is extending its comment period by 30 days to Sept. 22 on its proposal to allow consumers to air more detailed complaints about financial products and services in the public consumer complaint database.

This proposal has NAFCU and other financial trade groups concerned about the impact it will have on credit unions and other financial institutions with more than $10 billion in assets. Under the policy proposed earlier this month, CFPB would offer consumers making complaints the option to share the narrative behind the complaint on the public database, which the bureau said would "help the public detect specific trends in the market, aid consumer decision-making, and drive improved consumer service."

NAFCU has serious concerns about the potential impact of reputational risk for credit unions' with more than $10 billion in assets from the inclusion of unverified complaints in a public database. "At first blush, the risks of unwarranted reputational harm to good actors far outweigh any benefits this proposal would create to assist the CFPB to resolve legitimate complaints," NAFCU Director of Regulatory Affairs Mike Coleman said.

The database now has anonymous information about the complaint received, such as the consumer's zip code. However, this proposal would allow the consumer's narrative description of what happened to be included in the database, if the consumer chooses. The bureau also said it would offer companies the chance to have their responses published concurrently.

NAFCU is encouraging members to submit comments on the proposal. NAFCU's Regulatory Alert on the proposal can be viewed here.