CFPB Requests Public Input on Quality of Customer Service at Big Banks

The CFPB requested data and customer input regarding obstacles that may prevent consumers from receiving (i) high levels of customer service and (ii) high-quality interaction with large depository institutions.

In a Request for Information ("RFI"), the CFPB asked consumers about their customer service experiences. The CFPB said that it intends to use the feedback to ensure that customers receive individualized, quality advice and timely responses, noting that large banks have recently shifted focus towards algorithmic banking which has contributed to an erosion of customer service. The CFPB aims to renew big banks' attention to relationship banking.

The RFI follows findings from the CFPB's 2021 Annual Report (see related coverage here and here) in which the CFPB identified prominent customer service issues including (i) a lack of customized advice, responsiveness and care; (ii) difficulty obtaining basic information; (iii) having to repeat facts to multiple people; and (iv) dealing with employees who lack knowledge of customers' situations.

CFPB Director Rohit Chopra reiterated the need for this initiative by emphasizing the downtrend in relationship banking and the uptrend in algorithmic and transactional banking, particularly for households and small businesses. Additionally, Mr. Chopra said transactional banking negatively impacted rural residents' ability to access personalized banking and, as a result, quality customer service. He highlighted that the CFPB's plan to counteract the depersonalization of banking will include (i) assessing how best to protect consumers from automated call center mazes and help them secure quality service, (ii) reviewing bank merger policies, (iii) proposing an overhaul of the Community Reinvestment Act and (iv) ensuring that algorithmic banking is subject to the same rules as relationship banking.