Alert October 16, 2012

FRB Evaluates the CFPBs Consumer Response Unit

The Office of the Inspector General for the FRB released its evaluation of the CFPB’s Consumer Response Unit.  The evaluation found that the Consumer Response Unit is generally compliant with Dodd-Frank, but recommended that the CFPB take action in five areas that the OIG found lacking: (1) implement more “robust internal controls” for manual data entry; (2) identify and remediate the cause of data discrepancies; (3) disseminate an agency-wide privacy policy; (4) implement a comprehensive quality assurance program; and (5) consolidate quality assurance reviews to better identify the complaints reviewed. The CFPB subsequently released its quarterly Consumer Response Report, providing a snapshot of complaints received through September 30, 2012. This report updates previous reports issued by the CFPB in March and June 2012 (see June 26, 2012 Alert). Notably, 37% of all complaints received by the CFPB were referrals from other regulators or agencies.