PerformLine Releases Report With Risk Signals from CFPB Complaint Database to Help Financial Institutions Improve Regulatory Compliance Efforts

Report identifies valuable insights and takeaways for financial institutions through an analysis of consumer complaints to the CFPB.

PerformLine, the leading technology company that empowers organizations with a first-line of defense compliance solution, has released the 4th edition of it’s Complaint Risk Signal Report, an analysis of data from the Consumer Financial Protection Bureau’s (CFPB) Consumer Complaint Database and their enforcement actions from July 2011 to August 2019. The report uncovers observations about the nature of recent complaints and how the CFPB uses them to help guide regulatory actions. Its purpose is to help financial institutions understand their risk and improve their regulatory compliance efforts, customer experience and overall operational effectiveness.

The Fall 2019 Complaint Risk Signal Report dives into several trends regarding consumer complaints, the potential amount of monetary liability based off of various complaint thresholds, what happens to submitted complaints, top issues surrounding each financial product, how quickly companies are responding to complaints and the outcomes of company responses.

“We’re excited to release yet another report that empowers companies to identify risk signals and avoid costly penalties and settlements,” says Alex Baydin, Founder & CEO of PerformLine. “Understanding the nature of consumer complaints provides a competitive edge for those companies who monitor them. This report serves as a valuable tool by highlighting important trends and insights around consumer complaints so that companies can be proactive in their compliance programs.”

Richard Cordray, former Director of the CFPB, discussed the importance of utilizing information and data to help mitigate risk during COMPLY, the Compliance and RegTech Conference held each year in May, by saying “Customer feedback, litigation, regulatory oversight, both supervision and enforcement and the sheer data on how your business is fairing and what the trends are—these are all valuable building blocks for sensing the risks you face in compliance.”

Also during COMPLY2019, several State AGs discussed the importance of consumer complaints for detecting and mitigating risk. “When I was at the CFPB, complaints factored heavily into the enforcement actions that we brought,” says Chris D’Angelo, former CFPB Associate Director of Supervision and current Chief Deputy Attorney General for Economic Justice at the Office of the New York State AG. “I think businesses do themselves a real disservice if they don’t pay attention to [the complaints] we’re sending them. Compliance people should really be on top of that,” says Sam Mirarchi, Senior Deputy Attorney General of Pennsylvania.

For more trends and insights from the Fall 2019 Complaint Risk Signal Report, download here.

Companies can find PerformLine at the Online Lending Policy Summit on October 23, Money20/20 October 27-30 or at American Banker’s RegTech Conference 2019 November 12-13 to request a hard copy of the report.