[Federal Register Volume 87, Number 118 (Tuesday, June 21, 2022)]
[Notices]
[Pages 36828-36830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13207]


=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No. CFPB-2022-0040]


Request for Information Regarding Relationship Banking and 
Customer Service

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Request for information.

-----------------------------------------------------------------------

SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB) is 
seeking comments from the public related to relationship banking and 
how consumers can assert the right to obtain timely responses to 
requests for information about their accounts from banks and credit 
unions with more than $10 billion in assets, as well as from their 
affiliates.

DATES: Comments must be received by July 21, 2022.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2022-
0040, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. 
Include Docket No. CFPB-2022-0040 in the subject line of the message.
     Mail/Hand Delivery/Courier: Comment Intake--Relationship 
Banking, Consumer Financial Protection Bureau, 1700 G Street NW, 
Washington, DC 20552. Please note that due to circumstances associated 
with the COVID-19 pandemic, the CFPB discourages the submission of 
comments by hand delivery, mail, or courier.
    Instructions: The CFPB encourages the early submission of comments. 
All submissions should include document title and docket number. 
Because paper mail in the Washington, DC, area and at the CFPB is 
subject to delay, commenters are encouraged to submit comments 
electronically. In general, all comments received will be posted 
without change to https://www.regulations.gov. In addition, once the 
CFPB's headquarters reopens, comments will be available for public 
inspection and copying at 1700 G Street NW, Washington, DC 20552, on 
official business days between the hours of 10 a.m. and 5 p.m. Eastern 
Time. At that time, you can make an appointment to inspect the 
documents by telephoning 202-435-7275.
    All comments, including attachments and other supporting materials, 
will become part of the public record and subject to public disclosure. 
Proprietary

[[Page 36829]]

information or sensitive personal information, such as account numbers 
or Social Security numbers, or names of other individuals, should not 
be included. Comments will not be edited to remove any identifying or 
contact information.

FOR FURTHER INFORMATION CONTACT: Leslie Parrish, Deputy Assistant 
Director, Consumer Credit, Payments, and Deposits Markets, or Ted 
Wegner, Policy Analyst, Office of Consumer Education, at 202-435-7700. 
If you require this document in an alternative electronic format, 
please contact [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Under section 1034(c) of the Consumer Financial Protection Act 
(CFPA), consumers have a legal right to obtain information from the 
approximately 175 largest banks and credit unions in the country with 
more than $10 billion in assets, as well as from their affiliates.\1\ 
Through this statutory authority, consumers are able to gain valuable 
insight into their accounts by requesting certain account information 
from their depository institution.
---------------------------------------------------------------------------

    \1\ ``A covered person subject to supervision and primary 
enforcement by the Bureau pursuant to section 1025 shall, in a 
timely manner, comply with a consumer request for information in the 
control or possession of such covered person concerning the consumer 
financial product or service that the consumer obtained from such 
covered person, including supporting written documentation, 
concerning the account of the consumer.'' 12 U.S.C. 5534(c)(1). 
There are certain exceptions. See 12 U.S.C. 5534(c)(2); CFPB 
Depository Institutions (Dec. 2021), https://files.consumerfinance.gov/f/documents/cfpb_depository-institutions-list_2021-12.pdf.
---------------------------------------------------------------------------

    In the modern banking environment, consumers reasonably expect 
financial institutions to provide responses to their requests for 
information and high levels of customer service. Some banks may not be 
offering the baseline level of customer service that consumers 
reasonably expect to receive from companies that have control over 
their money.
    Relationship banking is an aspirational model of banking that meets 
its customers' needs through strong customer service, responsiveness, 
and care. Relationship banking can play a critical role in helping to 
foster fair, transparent, and competitive marketplaces.
    The CFPB endeavors to help institutions of all sizes foster an 
inclusive relationship banking model that meets consumers' reasonable 
expectations of high levels of customer service and enables consumers 
to hold financial institutions accountable when they encounter 
problems. This model is especially critical during a time when 
consumers report wanting and valuing high-quality human interactions in 
their financial lives, as well as more helpful digital channels to 
better facilitate self-help.\2\
---------------------------------------------------------------------------

    \2\ The Human + Digital Challenge in Banking: Consumers Want 
Both, Cornerstone Advisors (2021), https://go.backbase.com/rs/987-MGR-655/images/Backbase_Cornerstone_Human_Digital.pdf.
---------------------------------------------------------------------------

    Increasing market concentration in the financial services industry 
may present challenges in implementing an inclusive relationship 
banking model.\3\ The number of banking institutions has decreased 
``from nearly 18,000 in 1984 to fewer than 5,000 in 2021.'' \4\ Bank 
consolidation has had mixed results for consumers and customer service 
experiences.\5\
---------------------------------------------------------------------------

    \3\ Best & Worst Banks According to Consumer Reports Members: 
Smaller institutions get higher ratings in our latest survey of more 
than 72,000 members, Consumer Reports (Mar. 23, 2018), https://www.consumerreports.org/banks/best-and-worst-banks-and-credit-unions-a5170659592/.
    \4\ The Great Consolidation of Banks and Acceleration of Branch 
Closures Across America, National Community Reinvestment Coalition 
(Feb. 16, 2022), https://ncrc.org/the-great-consolidation-of-banks-and-acceleration-of-branch-closures-across-america/.
    \5\ U.S. Retail Banks Struggle to Differentiate, Deliver 
Meaningful Customer Experience as Economy Sours, J.D. Power Finds, 
J.D. Power (Apr. 7, 2022), https://www.jdpower.com/business/press-releases/2022-us-retail-banking-satisfaction-study; The Human + 
Digital Challenge in Banking: Consumers Want Both at 12, 30, 
Cornerstone Advisors (2021), https://go.backbase.com/rs/987-MGR-655/images/Backbase_Cornerstone_Human_Digital.pdf (Consumers report that 
it takes too long to get what they need done, that they have to 
repeat information to multiple sources, that employees aren't 
knowledgeable about their situation, and that it's difficult to find 
the information they need online.); Consumer Response Annual Report 
at 30-31, Consumer Financial Protection Bureau (Mar. 2022), https://files.consumerfinance.gov/f/documents/cfpb_2021-consumer-response-annual-report_2022-03.pdf (The CFPB received approximately 37,400 
checking or savings account complaints in 2021. Of the complaints 
where the company confirmed a commercial relationship with the 
consumer and responded with an explanation or relief, in 94% of 
those complaints, consumers reported that they attempted to resolve 
their issue with the company before submitting a complaint to the 
CFPB, indicating that many consumers are unable to resolve their 
issues through direct contact with their bank.).
---------------------------------------------------------------------------

    Of particular note is the loss of local banks in rural communities. 
Rural customers are more likely to visit smaller banks or credit 
unions, but face decreased banking access due to ``[t]rends in banking 
consolidation[, which] may be a contributing factor to the prevalence 
of rural banking deserts.'' \6\ Rural customers rely on smaller banks 
and the relationship banking they offer, with local knowledge and long-
standing relationships, to help maintain the ``civic fabric of rural 
communities.'' \7\
---------------------------------------------------------------------------

    \6\ Data Spotlight: Challenges in Rural Banking Access at 9, 
Consumer Financial Protection Bureau (Apr. 2022), https://files.consumerfinance.gov/f/documents/cfpb_data-spotlight_challenges-in-rural-banking_2022-04.pdf.
    \7\ Id at 10.
---------------------------------------------------------------------------

    Federal consumer financial law has long been concerned with 
consumers' ability to access information. For example, consumers have 
the right to send a request for information to their mortgage servicer 
in order to obtain information with respect to their mortgage loan.\8\ 
In addition, the Fair Credit Reporting Act gives consumers the right to 
annually request a free copy of their consumer report from each of the 
nationwide consumer reporting agencies and mandates that consumers 
receive notice when a user of a consumer report takes any adverse 
actions on a consumer on the basis, in whole or in part, of information 
contained in a consumer report.\9\
---------------------------------------------------------------------------

    \8\ 12 CFR 1024.36.
    \9\ 15 U.S.C. 1681j(a); 15 U.S.C. 1681m(a).
---------------------------------------------------------------------------

    The CFPA's section 1034(c) right also provides an ability for 
consumers to access information, as Congress made a determination that 
consumers need additional rights to demand information from large 
depository institutions.

II. Request for Comment

    This request for information seeks information from the public on 
what customer service obstacles consumers face in the banking market, 
and specifically, what information would be helpful for consumers to 
obtain from depository institutions pursuant to section 1034(c) of the 
CFPA.
    The CFPB welcomes the public to submit stories, data, and 
information related to this request. To assist commenters in developing 
responses, the CFPB has crafted the below questions that commenters may 
answer.
    1. What types of information do consumers request from their 
depository institution? How are consumers using the information?
    2. What types of information do consumers request from their 
depository institution, but are often unable to obtain?
    3. How does the channel (phone, in-writing, online, in-person) 
through which consumers request information impact their ability to 
obtain information?
    4. How do consumers' customer service experiences differ depending 
on the channel through which they interact with their depository 
institution (phone, in-writing, online, in-person)?
    5. How are customer service representatives evaluated and

[[Page 36830]]

compensated, and how might compensation structure and incentives impact 
the service provided?
    6. What customer service obstacles have consumers experienced that 
have adversely affected their ability to bank?
    7. What unique customer service obstacles do immigrants, rural 
communities, or older consumers experience?
    8. What are typical call wait times?
    9. How often are calls dropped or disconnected? How often do 
companies use automated and digital communication channels such as 
interactive voice response (IVR) systems and online chat functions?
    10. Are there any fees associated with customer service or requests 
for information?
    11. What are the most important customer service features or 
experiences that help produce satisfactory banking relationships 
between financial institutions and consumers?
    12. Please explain the value of consumers having access to the 
following information pertaining to their accounts:
    a. Internal or external communications about an account.
    b. A listing of all companies that are provided with information 
about an account.
    c. The purposes for which information about a consumer's account 
are shared.
    d. Any compensation that a depository institution receives for 
sharing information about an account.
    e. Any conditions placed on the use of information about an 
account.
    f. A listing of all companies with authorization to receive 
automatic or reoccurring payments from an account.
    g. Information reviewed or used in investigating a consumer's 
dispute about an account.
    h. Any third-party information used to make account decisions about 
consumers, including but not limited to consumer reports and credit or 
other risk scores.
    13. What information would be helpful for consumers to obtain from 
depository institutions in order to improve their banking experience?
    14. How have methods of customer engagement changed as a result of 
the COVID-19 pandemic?

Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2022-13207 Filed 6-17-22; 8:45 am]
BILLING CODE 4810-AM-P