CFPB Issues Advisory Opinion on Consumer Requests for Information
The CFPB recently issued an Advisory Opinion that provides guidance on Section 1034(c) of the CFPA, which generally requires large banks and credit unions with over $10 billion in assets to comply in a timely manner with consumer requests for information, including supporting written documentation, concerning their accounts for financial products and services. The CFPB states in the Advisory Opinion that it does not intend to seek monetary relief for potential violations of Section 1034(c) that occur prior to February 1, 2024.
A consumer request for information under Section 1034(c) applies to any information relating to a consumer’s account under the control or possession of the bank or credit union, including any information that may be necessary for a consumer to manage their accounts or resolve disputes with their bank or credit union, or with other third parties. A bank or credit union does not comply with Section 1034(c) if it imposes conditions or requirements that unreasonably impede a consumer’s ability to request and receive account information, if the bank or credit union’s response is not timely, or if the response is inaccurate or incomplete.
A consumer’s ability to request and receive account information may be unreasonably impeded if, among other things, the bank or credit union: (i) requires consumers to pay a fee or charge to request account information; (ii) imposes excessively long wait times to make a request to customer service representative; (iii) requires submission of the same request multiple times; (iv) requires consumers to interact with a chatbot that does not understand or adequately respond to requests; or (v) directs consumers to obtain information that the institution possesses from a third party instead.
The Advisory Opinion focused particularly on fees or charges imposed for requesting information, regardless of how the bank or credit union labels or categorizes a fee on its fee schedules or other documents. Although the CFPB indicated that fees may be charged in certain, limited circumstances (e.g., a consumer repeatedly asking for a copy of the same document), in general, charging the fees for the following would likely unreasonably impede a consumer’s request for information: (i) to respond to consumer inquiries regarding deposit account balances; (ii) to respond to consumer inquiries regarding the amount necessary to pay a loan balance; (iii) to respond to requests for a specific type of supporting document, such as a check image or an original account agreement; or (iv) for time spent on consumer inquiries seeking information and supporting documents regarding an account.
Additionally, note the requirement that a response be complete and accurate extends to the use of technologies, such as chatbots or other automated responses. If those technologies do not properly recognize consumer information requests or provide inaccurate or incomplete responses to those requests, the bank or credit union may violate Section 1034(c).
