What Consumer Complaints Tell

Of the many complaints that the OCC receives annually against banks, many are based on the Uniform Commercial Code, state law, and other areas that are not within the OCC's regulatory authority.

Examiners look at the complaints received against the bank to identify areas that should be looked at during the examination. The most common complaint the OCC receives involve credit cards. The card "preapproval" process generates the most complaints, often making allegations that the consumer was misled by "bait and switch" advertising methods. Promotional claims based on teaser rates, telephone solicitations, and credit lines "up to" unrealistically high amounts are the basis of most complaints. Another type of consumer complaint is the result of mergers. Consumers i ask the OCC for information such as where to make payments. When banks merge, they often overlook the importance of sending the customers this type of basic transaction information. Consumers are left wondering "who is my bank?" FDIC reports an increase in complaints and questions about deposit insurance coverage and non-insured investment products.

Copyright © 1997 Compliance Action. Originally appeared in Compliance Action, Vol. 2, No. 8, 7/97