--Capital One Financial, Citigroup, J.P. Morgan Chase and Bank
of America accounted for more than half the 137 complaints
--Banking industry 'disappointed' by consumer bureau's decision
to release data and company names
--New database includes complaints received as of June 1,
2012
By Maya Jackson Randall
WASHINGTON--The Consumer Financial Protection Bureau on Tuesday
started releasing data on credit-card complaints by consumers,
showing that a handful of large banks account for the most
complaints.
The agency released data for a limited period that began on June
1, showing that Capital One Financial Corp., Citigroup Inc., J.P.
Morgan Chase & Co. and Bank of America Corp. accounted for more
than half the 137 complaints the agency has received since the
beginning of the month. Bloomberg News, in a public records
request, received a larger set of data on financial services
company complaints from the CFPB, covering 13,210 complaints from
July 21 to Dec. 31, 2011. That set of data, according to Bloomberg,
showed Bank of America, J.P. Morgan, Citigroup, Capital One and
Wells Fargo & Co. receiving the largest number of complaints,
mostly about credit cards.
The new CFPB database, which will be searchable by the public,
represents the first time the consumer agency has published
searchable information, including the name of the company
responsible for the credit card, about individual credit-card
complaints.
For the most part, the banks that received the largest number of
complaints are also among the top issuers of credit cards in the
roughly $2 trillion credit-card industry. J.P. Morgan, Bank of
America, and Citigroup are the top three credit-card issuers by
number of cards, according to the Nilson Report. Capital One comes
in as the eighth-largest issuer, based on that list. In terms of
market share, American Express ranks No. 1, followed by J.P.
Morgan, Bank of America, Citibank, and Capital One is fifth, based
on purchase volume data provided by the Nilson Report.
While the new database only contains credit-card-related
complaints the bureau received as of June 1, the bureau, which has
been collecting credit-card complaints since last July, is expected
to make more of the data it has gathered available to the
public.
The database includes searchable information about individual
complaints, including the name of the credit-card issuers, the type
of complaint and the customer's ZIP code.
For the period beginning June 1, 2012, Capital One was the
biggest source of credit-card complaints at 24% of the 137
complaints with the CFPB. Citigroup logged 20% of the complaints,
while J.P. Morgan received 18%.
"We're always interested in customer feedback--good and
bad--since we are focused on continuous improvement and providing a
great customer experience," said a Capital One spokeswoman.
J.P. Morgan said it welcomes feedback from its customers and
added that it has taken steps to improve its credit cards, such as
simplifying its card-member agreements and extending its payment
times.
"While we are pleased with the progress we've made, we look
forward to further improving the service our customers expect and
deserve and we encourage them to contact us directly if they have
any concerns," the company said in a statement.
Citigroup didn't immediately respond to requests for
comment.
Still, the financial industry is concerned about the bureau's
database and has argued that the data are misleading and will
unfairly tarnish banks' reputations. Some groups have even argued
that the bureau, by publicizing the complaint data, is going beyond
its authority as outlined under the Dodd-Frank financial-overhaul
law.
"While our industry stands ready to work with the CFPB to
resolve customer concerns, the bureau's plan to release unverified
data is disappointing and could mislead consumers," the American
Bankers Association said in a statement Tuesday. "Publishing
allegations is often different than publishing facts."
The industry group said that, of the more than 383 million
credit-card accounts in the U.S., less than one-hundredth of 1%
have submitted a complaint to the bureau.
The consumer bureau said it doesn't verify the accuracy of the
complaints, but it does take steps to confirm that the complaint is
indeed based on a commercial relationship between the consumer and
the identified company.
"We believe the disclosure of this data not only serves the
public interest, but promotes the advancement of the free
enterprise system," said CFPB Director Richard Cordray in comments
to reporters Monday.
Write to Maya Jackson Randall at
maya.jackson-randall@dowjones.com.