The CFPB issued its second monthly complaint report in late November, and it shows that more consumers are taking advantage of the organization's complaint process. As of Nov. 1, 2015, the CFPB has handled approximately 749,400 complaints, including approximately 24,300 complaints in October 2015 – more in one month than they saw in all of 2014.
In March of this year, the CFPB added a new feature to the consumer complaint database: Namely, consumers now have the option to publish a so-called narrative regarding the complaint. The narrative elaborates on the consumer's allegations against the company. Previously, the database only identified the financial product complained about, name of the company and a category identifying the topic of the complaint.
To all of the above I say, great! Stand-outs in the financial space (read: Credit unions) should be thrilled too. More data provides more knowledge, and allows credit unions to really separate themselves as institutions that are doing it right from those who aren't.
The fact that the financial services industry doesn't have complaint transparency is a common grievance. The public availability of complaint narratives will provide greater transparency into complaints across all financial institutions. Access to complaint narratives is available not only for the financial institution but also for peer firms. This information can be used to gain valuable insights into member and customer pain points across the industry, gather competitive intelligence on peer organizations, anticipate emerging problem areas and learn from peer experience.
Credit unions must make sure they appropriately resolve a complaint aimed directly at them. And, they must communicate with the member to confirm he or she is satisfied with the resolution. It's not enough to “think” the member is happy. You need to ask. This keeps your members from using the CFPB complaint site and/or taking it to social media if you can solve it on the front side.
While the trigger of a complaint is an expression of dissatisfaction, receiving a complaint also represents a positive opportunity to learn, improve processes, and enhance the member experience both through effective communication and resolution for the individual member, and through enhancements that fix the issues that might create similar situations for other members.
The CFPB's press release announcing the new policy noted: “The narratives will provide context to complaints, spotlighting specific trends, and help consumers make informed decisions. The narrative may encourage companies to improve the overall quality of their products and services, and more vigorously compete with good customer service.”
Pay attention to the monthly complaint reports. Review the complaint categories. Read the narratives. Understand consumers' pain points. See trends. Make your processes better. Create a better member experience. Transparency equals knowledge, which gives you the insight to make your organization better.
If you haven't done so already, get a firm complaint management process in place. If you embed a comprehensive complaint management program into your organizational culture, you can achieve long-lasting benefits, as well as avoid costly and damaging consequences.
Failing to act strategically in regard to complaints management can mean missing product and service enhancement opportunities, negative impacts to revenue from regulatory fines and damage to your reputation.
Welcome the new transparency. Welcome the opportunity.
John-Ashley Paul is CEO of Cubus Solutions. He can be reached at 925-344-5302 or [email protected].
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